Blue Bird (NASDAQ: BLBD) and Fiat Chrysler Automobiles (NYSE:FCAU) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Blue Bird and Fiat Chrysler Automobiles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Bird 2.91% -24.21% 9.52%
Fiat Chrysler Automobiles 2.81% 16.08% 3.21%

Institutional and Insider Ownership

94.8% of Blue Bird shares are held by institutional investors. Comparatively, 31.2% of Fiat Chrysler Automobiles shares are held by institutional investors. 16.7% of Blue Bird shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Blue Bird and Fiat Chrysler Automobiles’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Bird $990.60 million 0.46 $28.80 million $0.61 30.90
Fiat Chrysler Automobiles $122.56 billion 0.27 $2.00 billion N/A N/A

Fiat Chrysler Automobiles has higher revenue and earnings than Blue Bird.

Risk & Volatility

Blue Bird has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Fiat Chrysler Automobiles has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Blue Bird and Fiat Chrysler Automobiles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Bird 0 0 2 0 3.00
Fiat Chrysler Automobiles 0 4 6 0 2.60

Blue Bird presently has a consensus target price of $22.00, suggesting a potential upside of 16.71%. Fiat Chrysler Automobiles has a consensus target price of $16.97, suggesting a potential downside of 22.04%. Given Blue Bird’s stronger consensus rating and higher probable upside, equities analysts plainly believe Blue Bird is more favorable than Fiat Chrysler Automobiles.

Summary

Blue Bird beats Fiat Chrysler Automobiles on 9 of the 13 factors compared between the two stocks.

Blue Bird Company Profile

Blue Bird Corporation designs, engineers, manufactures, and sells school buses and aftermarket parts in the United States, Canada, and internationally. It offers Type C, Type D, and specialty buses, as well as Sigma, a bus for public transportation. The company sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments. It also distributes aftermarket parts of various makes. The company was founded in 1927 and is headquartered in Fort Valley, Georgia.

Fiat Chrysler Automobiles Company Profile

Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, manufactures, distributes, and sells vehicles, components, and production systems. The company operates through six segments: NAFTA, LATAM, APAC, EMEA, Maserati, and Components. It provides passenger cars, light trucks, and light commercial vehicles under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brand names; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand. The company also produces and sells lighting components, body control units, suspensions, shock absorbers, electronic systems, exhaust systems, powertrain components, engine control units, plastic molding components, and after-market products under the Magneti Marelli brand name. In addition, it offers cast iron components for engines, gearboxes, transmissions and suspension systems, aluminum cylinder heads, and engine blocks under the Teksid brand; and designs and produces industrial automation systems and related products for the automotive industry under the Comau brand name. Further, the company provides retail and dealer financings; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 140 countries. The company was formerly known as Fiat S.p.A. and changed its name to Fiat Chrysler Automobiles N.V. in October 2014. Fiat Chrysler Automobiles N.V. was founded in 1899 and is based in London, the United Kingdom.

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