Scorpio Bulkers (NYSE: SALT) and Rev Group (NYSE:REVG) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
37.0% of Scorpio Bulkers shares are owned by institutional investors. Comparatively, 95.4% of Rev Group shares are owned by institutional investors. 4.0% of Rev Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Scorpio Bulkers pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Scorpio Bulkers pays out -4.8% of its earnings in the form of a dividend. Rev Group pays out 73.2% 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.
This is a breakdown of recent recommendations and price targets for Scorpio Bulkers and Rev Group, as provided by MarketBeat.
||Strong Buy Ratings
Scorpio Bulkers presently has a consensus target price of $10.40, indicating a potential upside of 40.54%. Rev Group has a consensus target price of $31.00, indicating a potential upside of 49.61%. Given Rev Group’s stronger consensus rating and higher possible upside, analysts plainly believe Rev Group is more favorable than Scorpio Bulkers.
Valuation and Earnings
This table compares Scorpio Bulkers and Rev Group’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Rev Group has higher revenue and earnings than Scorpio Bulkers. Scorpio Bulkers is trading at a lower price-to-earnings ratio than Rev Group, indicating that it is currently the more affordable of the two stocks.
This table compares Scorpio Bulkers and Rev Group’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Risk and Volatility
Scorpio Bulkers has a beta of 3.18, indicating that its stock price is 218% more volatile than the S&P 500. Comparatively, Rev Group has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Rev Group beats Scorpio Bulkers on 12 of the 15 factors compared between the two stocks.
Scorpio Bulkers Company Profile
Scorpio Bulkers Inc. is a shipping company. The Company owns and operates newbuilding drybulk carriers with fuel-efficient specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). The Company operates through two segments: Kamsarmax and Ultramax. Its Kamsarmax segment includes vessels ranging from approximately 77,500 DWT to 98,700 DWT. Its Ultramax segment includes vessels ranging from approximately 60,200 DWT to 64,000 DWT. All of its owned vessels have carrying capacities of greater than 60,000 dwt. Its vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. As of December 31, 2016, its operating fleet of 48 vessels consisted of 47 drybulk vessels and one chartered-in drybulk vessel. It also has a contract for the construction of one newbuilding drybulk vessel.
Rev Group Company Profile
REV Group, Inc. is a designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. The Company operates through three segments: Fire & Emergency, Commercial and Recreation. The Company provides customized vehicle solutions for applications, including essential needs (ambulances, fire apparatus, school buses, mobility vans and municipal transit buses), industrial and commercial (terminal trucks, cut-away buses and street sweepers) and consumer leisure (recreational vehicles (RVs) and luxury buses). The Fire & Emergency segment manufactures a range of fire apparatus and ambulance products. The Commercial segment manufactures transit and shuttle buses, Type A school buses, mobility vans, and other specialty vehicles, including sweepers and terminal trucks distributed both through dealers and direct. The Recreation segment manufactures motorized RV products sold to brand-loyal, repeat customers who purchase through dealers.
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