Head to Head Review: REV Group (NYSE:REVG) versus ECD Automotive Design (NASDAQ:ECDA)

ECD Automotive Design (NASDAQ:ECDA) and REV Group (NYSE:REVG) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

ECD Automotive Design has a beta of -1.51, suggesting that its share price is 251% less volatile than the S&P 500. Comparatively, REV Group has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Earnings and Valuation

This table compares ECD Automotive Design and REV Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$25.73 million	1.25	-$1.60 million	N/A	N/A
REV Group	$2.48 billion	0.62	$45.30 million	$4.19	7.08

REV Group has higher revenue and earnings than ECD Automotive Design.

Insider & Institutional Ownership

94.8% of ECD Automotive Design shares are owned by institutional investors. 16.3% of ECD Automotive Design shares are owned by insiders. Comparatively, 1.9% of REV Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ECD Automotive Design and REV Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	N/A	N/A	N/A
REV Group	9.92%	18.69%	6.01%

Analyst Ratings

This is a summary of current recommendations and price targets for ECD Automotive Design and REV Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	0	0	1	0	3.00
REV Group	1	1	1	0	2.00

ECD Automotive Design currently has a consensus target price of $9.00, suggesting a potential upside of 867.74%. REV Group has a consensus target price of $29.17, suggesting a potential downside of 1.73%. Given ECD Automotive Design’s stronger consensus rating and higher probable upside, equities analysts clearly believe ECD Automotive Design is more favorable than REV Group.

Summary

REV Group beats ECD Automotive Design on 6 of the 11 factors compared between the two stocks.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.

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.