Critical Survey: The Shyft Group (NASDAQ:SHYF) versus REE Automotive (NASDAQ:REE)

The Shyft Group (NASDAQ:SHYFGet Rating) and REE Automotive (NASDAQ:REEGet Rating) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares The Shyft Group and REE Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Shyft Group 3.91% 15.42% 7.72%
REE Automotive N/A -216.18% -189.05%

Valuation & Earnings

This table compares The Shyft Group and REE Automotive’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Shyft Group $991.79 million 0.91 $68.93 million $1.09 23.51
REE Automotive $10,000.00 22,358.48 -$505.33 million ($1.90) -0.36

The Shyft Group has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than The Shyft Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

The Shyft Group has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

81.1% of The Shyft Group shares are owned by institutional investors. Comparatively, 24.6% of REE Automotive shares are owned by institutional investors. 2.3% of The Shyft Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for The Shyft Group and REE Automotive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Shyft Group 0 0 1 1 3.50
REE Automotive 2 1 2 0 2.00

The Shyft Group presently has a consensus price target of $44.00, suggesting a potential upside of 71.67%. REE Automotive has a consensus price target of $4.40, suggesting a potential upside of 537.59%. Given REE Automotive’s higher probable upside, analysts plainly believe REE Automotive is more favorable than The Shyft Group.

Summary

The Shyft Group beats REE Automotive on 12 of the 15 factors compared between the two stocks.

About The Shyft Group

(Get Rating)

The Shyft Group, Inc. manufactures and assembles specialty vehicles for the commercial vehicle and recreational vehicle industries in the United States and internationally. It operates in two segments, Fleet Vehicles and Services, and Specialty Vehicles. The Fleet Vehicles and Services segment manufactures and sells commercial vehicles used in the e-commerce/last mile/parcel delivery, beverage and grocery delivery, laundry and linen, mobile retail, and trades and construction industries. This segment markets its commercial vehicles, including walk-in vans, cutaway vans, and truck bodies under the Aeromaster, Velocity, Trademaster, and Utilivan brands; and vocation-specific equipment upfit services under the Utilimaster Upfit Services and Strobes-R-Us brands. It also installs specialty interior and exterior up-fit equipment for walk-in vans, truck bodies, cargo vans, and light duty pick-up trucks; and provides aftermarket support, including parts sales and field services, as well as parts and accessories. The Specialty Vehicles segment engineers and manufactures luxury class A diesel motor home chassis; and manufactures and assembles truck bodies under the Royal Truck Body and DuraMag brands. It also provides final assembly services for Isuzu N-gas and F-series chassis under the Builtmore Contract Manufacturing brand; and designs and installs custom lighting and upfit solutions for a range of specialty industries. In addition, this segment provides truck accessories under the Magnum brand; and a range of parts and accessories, and maintenance and repair services for its motorhome and specialty chassis. The Shyft Group, Inc. sells its products to commercial users, original equipment manufacturers, dealers, individuals, municipalities, and other government entities. The company was formerly known as Spartan Motors, Inc. and changed its name to The Shyft Group, Inc. in June 2020. The Shyft Group, Inc. was incorporated in 1975 and is headquartered in Novi, Michigan.

About REE Automotive

(Get Rating)

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

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