Critical Contrast: Kuehne & Nagel International (OTCMKTS:KHNGY) versus REV Group (NYSE:REVG)

Kuehne & Nagel International (OTCMKTS:KHNGY) and REV Group (NYSE:REVG) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Profitability

This table compares Kuehne & Nagel International and REV Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	4.47%	41.79%	9.72%
REV Group	4.51%	27.25%	8.95%

Risk & Volatility

Kuehne & Nagel International has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, REV Group has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Dividends

Kuehne & Nagel International pays an annual dividend of $1.24 per share and has a dividend yield of 3.0%. REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Kuehne & Nagel International pays out 55.6% of its earnings in the form of a dividend. REV Group pays out 11.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. REV Group has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Kuehne & Nagel International and REV Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	1	2	0	0	1.67
REV Group	1	2	2	0	2.20

REV Group has a consensus target price of $56.50, suggesting a potential downside of 8.65%. Given REV Group’s stronger consensus rating and higher probable upside, analysts plainly believe REV Group is more favorable than Kuehne & Nagel International.

Valuation and Earnings

This table compares Kuehne & Nagel International and REV Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$28.18 billion	0.89	$1.34 billion	$2.23	18.62
REV Group	$2.38 billion	1.27	$257.60 million	$2.12	29.17

Kuehne & Nagel International has higher revenue and earnings than REV Group. Kuehne & Nagel International is trading at a lower price-to-earnings ratio than REV Group, indicating that it is currently the more affordable of the two stocks.

Summary

REV Group beats Kuehne & Nagel International on 9 of the 15 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

About REV Group

REV Group, Inc., together with its subsidiaries, designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, Spartan Fire Chassis, and Ladder Tower brand names; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brand names. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Eldorado National (California), Magellan, Capacity, and LayMor brand names. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade RV, Midwest Automotive Designs, and Lance Camper brands; and produces a range of custom molded fiberglass products. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. was incorporated in 2008 and is based in Brookfield, Wisconsin.