Contrasting REV Group (NYSE:REVG) and Royal Mail (OTCMKTS:ROYMY)

by · The Cerbat Gem

REV Group (NYSE:REVGGet Free Report) and Royal Mail (OTCMKTS:ROYMYGet Free Report) are both mid-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for REV Group and Royal Mail, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
REV Group13112.33
Royal Mail00000.00

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

Risk and Volatility

REV Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Royal Mail has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Earnings & Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
REV Group$2.46 billion1.27$95.20 million$1.9133.46
Royal Mail$15.94 billion0.25$67.88 millionN/AN/A

REV Group has higher earnings, but lower revenue than Royal Mail.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
REV Group3.86%31.67%10.30%
Royal MailN/AN/AN/A

Summary

REV Group beats Royal Mail on 10 of the 11 factors compared between the two stocks.

About REV Group

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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 Royal Mail

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International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.