PowerFleet (NASDAQ:AIOT – Get Free Report) and REV Group (NYSE:REVG – Get Free Report) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Volatility & Risk
PowerFleet has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, REV Group has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Institutional and Insider Ownership
73.4% of PowerFleet shares are owned by institutional investors. 6.3% of PowerFleet shares are owned by company insiders. Comparatively, 1.7% of REV Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PowerFleet | 1 | 1 | 3 | 0 | 2.40 |
| REV Group | 0 | 2 | 1 | 1 | 2.75 |
PowerFleet currently has a consensus target price of $9.67, indicating a potential upside of 147.23%. REV Group has a consensus target price of $55.67, indicating a potential downside of 12.88%. Given PowerFleet’s higher possible upside, research analysts plainly believe PowerFleet is more favorable than REV Group.
Earnings & Valuation
This table compares PowerFleet and REV Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PowerFleet | $443.78 million | 1.18 | -$20.55 million | ($0.16) | -24.44 |
| REV Group | $2.46 billion | 1.27 | $95.20 million | $1.91 | 33.46 |
REV Group has higher revenue and earnings than PowerFleet. PowerFleet 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 PowerFleet and REV Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PowerFleet | -4.63% | -1.33% | -0.66% |
| REV Group | 3.86% | 31.67% | 10.30% |
Summary
REV Group beats PowerFleet on 10 of the 15 factors compared between the two stocks.
About PowerFleet
PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.
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.
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