TFI International (NYSE:TFII) & REV Group (NYSE:REVG) Head to Head Review

TFI International (NYSE:TFII) and REV Group (NYSE:REVG) are both mid-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for TFI International and REV Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFI International	1	6	11	2	2.70
REV Group	1	2	2	0	2.20

TFI International presently has a consensus target price of $117.06, suggesting a potential upside of 31.94%. REV Group has a consensus target price of $56.50, suggesting a potential downside of 1.05%. Given TFI International’s stronger consensus rating and higher probable upside, equities analysts clearly believe TFI International is more favorable than REV Group.

Institutional and Insider Ownership

73.3% of TFI International shares are held by institutional investors. 5.5% of TFI International shares are held by company insiders. Comparatively, 1.7% of REV Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

TFI International has a beta of 1.47, meaning that its share price is 47% more 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.

Earnings & Valuation

This table compares TFI International and REV Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFI International	$8.40 billion	0.87	$422.48 million	$4.36	20.35
REV Group	$2.40 billion	1.16	$257.60 million	$2.12	26.93

TFI International has higher revenue and earnings than REV Group. TFI 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TFI International	4.48%	15.45%	5.72%
REV Group	4.51%	27.25%	8.95%

Dividends

TFI International pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. TFI International pays out 41.3% 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.

Summary

TFI International beats REV Group on 11 of the 18 factors compared between the two stocks.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.

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.