Head-To-Head Review: Mercedes-Benz Group (OTCMKTS:MBGYY) and REV Group (NYSE:REVG)

Mercedes-Benz Group (OTCMKTS:MBGYY) and REV Group (NYSE:REVG) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings for Mercedes-Benz Group and REV Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercedes-Benz Group	1	2	0	0	1.67
REV Group	1	1	2	0	2.25

REV Group has a consensus price target of $33.75, indicating a potential downside of 0.41%. Given REV Group’s stronger consensus rating and higher probable upside, analysts clearly believe REV Group is more favorable than Mercedes-Benz Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mercedes-Benz Group	7.36%	11.66%	4.11%
REV Group	10.82%	17.74%	5.71%

Valuation and Earnings

This table compares Mercedes-Benz Group and REV Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercedes-Benz Group	$165.81 billion	0.35	$15.43 billion	C$2.88	4.70
REV Group	$2.38 billion	0.74	$45.30 million	$4.49	7.55

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

Volatility and Risk

Mercedes-Benz Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, REV Group has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

REV Group beats Mercedes-Benz Group on 10 of the 12 factors compared between the two stocks.

About Mercedes-Benz Group

Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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.