Head-To-Head Review: Firstgroup (OTCMKTS:FGROY) versus REV Group (NYSE:REVG)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.38 billion	1.21	$257.60 million	$2.12	27.87
Firstgroup	$6.46 billion	0.23	$162.68 million	N/A	N/A

REV Group has higher earnings, but lower revenue than Firstgroup.

Dividends

REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Firstgroup pays an annual dividend of $0.05 per share and has a dividend yield of 1.9%. REV Group pays out 11.3% of its earnings in the form of a dividend. REV Group has raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REV Group	4.51%	27.25%	8.95%
Firstgroup	N/A	N/A	N/A

Risk and Volatility

REV Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Firstgroup has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for REV Group and Firstgroup, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	1	4	1	1	2.29
Firstgroup	0	0	0	0	0.00

REV Group currently has a consensus target price of $49.25, indicating a potential downside of 16.65%. Given REV Group’s stronger consensus rating and higher probable upside, analysts plainly believe REV Group is more favorable than Firstgroup.

Summary

REV Group beats Firstgroup on 11 of the 14 factors compared between the two stocks.

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.

About Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.