REV Group (NYSE:REVG) versus Dynagas LNG Partners (NYSE:DLNG) Financial Analysis

Dynagas LNG Partners (NYSE:DLNG) and REV Group (NYSE:REVG) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Profitability

This table compares Dynagas LNG Partners and REV Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	35.60%	16.11%	6.93%
REV Group	4.51%	27.25%	8.95%

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.7%. REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Dynagas LNG Partners pays out 17.9% 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 breakdown of current ratings and recommmendations for Dynagas LNG Partners and REV Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
REV Group	1	1	3	1	2.67

REV Group has a consensus price target of $56.50, suggesting a potential downside of 7.23%. Given REV Group’s stronger consensus rating and higher probable upside, analysts clearly believe REV Group is more favorable than Dynagas LNG Partners.

Earnings and Valuation

This table compares Dynagas LNG Partners and REV Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.40 million	0.83	$51.55 million	$1.12	3.14
REV Group	$2.38 billion	1.25	$257.60 million	$2.12	28.73

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

Risk and Volatility

Dynagas LNG Partners has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, REV Group has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

REV Group beats Dynagas LNG Partners on 14 of the 16 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

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.