Financial Survey: REV Group (NYSE:REVG) & DSV (OTCMKTS:DSDVY)

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

Risk & Volatility

REV Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, DSV has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of DSV shares are owned by institutional investors. 1.7% of REV Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. DSV pays an annual dividend of $0.30 per share and has a dividend yield of 0.2%. REV Group pays out 12.6% of its earnings in the form of a dividend. DSV pays out 10.2% 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 increased its dividend for 1 consecutive years. REV Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.46 billion	1.27	$95.20 million	$1.91	33.46
DSV	$37.45 billion	1.61	$1.23 billion	$2.94	42.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REV Group	3.86%	31.67%	10.30%
DSV	3.27%	9.46%	3.86%

Analyst Recommendations

This is a summary of recent ratings and target prices for REV Group and DSV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	1	3	1	1	2.33
DSV	0	2	3	1	2.83

REV Group currently has a consensus target price of $49.25, indicating a potential downside of 22.93%. Given REV Group’s higher probable upside, equities analysts clearly believe REV Group is more favorable than DSV.

Summary

DSV beats REV Group on 10 of the 17 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 DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.