Grupo Aeroportuario del Sureste (NYSE:ASR) and REV Group (NYSE:REVG) Financial Analysis

REV Group (NYSE:REVG) and Grupo Aeroportuario del Sureste (NYSE:ASR) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares REV Group and Grupo Aeroportuario del Sureste’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%
Grupo Aeroportuario del Sureste	31.96%	20.67%	13.44%

Dividends

REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Grupo Aeroportuario del Sureste pays an annual dividend of $37.83 per share and has a dividend yield of 10.2%. REV Group pays out 12.6% of its earnings in the form of a dividend. Grupo Aeroportuario del Sureste pays out 200.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. REV Group has raised its dividend for 1 consecutive years.

Risk and Volatility

REV Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Grupo Aeroportuario del Sureste has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

10.6% of Grupo Aeroportuario del Sureste shares are owned by institutional investors. 1.7% 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.

Earnings and Valuation

This table compares REV Group and Grupo Aeroportuario del Sureste”s 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
Grupo Aeroportuario del Sureste	$1.72 billion	6.50	$743.97 million	$18.86	19.76

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for REV Group and Grupo Aeroportuario del Sureste, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	1	3	1	1	2.33
Grupo Aeroportuario del Sureste	1	3	2	0	2.17

REV Group currently has a consensus price target of $49.25, suggesting a potential downside of 22.93%. Grupo Aeroportuario del Sureste has a consensus price target of $300.00, suggesting a potential downside of 19.48%. Given Grupo Aeroportuario del Sureste’s higher probable upside, analysts plainly believe Grupo Aeroportuario del Sureste is more favorable than REV Group.

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 Grupo Aeroportuario del Sureste

Grupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlán. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services, as well as engages in the various commercial operations. In addition, it holds concessions to operate the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín, the José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. Grupo Aeroportuario del Sureste, S. A. B. de C. V. was founded in 1996 and is headquartered in Mexico City, Mexico.