Critical Survey: Ferrari (RACE) and Blue Bird (BLBD)

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

Profitability

This table compares Ferrari and Blue Bird’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferrari 15.06% 106.38% 13.30%
Blue Bird 2.91% -24.21% 9.52%

Analyst Recommendations

This is a summary of recent ratings and price targets for Ferrari and Blue Bird, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferrari 1 4 4 0 2.33
Blue Bird 0 0 2 0 3.00

Ferrari presently has a consensus price target of $113.20, suggesting a potential downside of 0.98%. Blue Bird has a consensus price target of $22.00, suggesting a potential upside of 14.29%. Given Blue Bird’s stronger consensus rating and higher possible upside, analysts clearly believe Blue Bird is more favorable than Ferrari.

Dividends

Ferrari pays an annual dividend of $0.68 per share and has a dividend yield of 0.6%. Blue Bird does not pay a dividend.

Valuation & Earnings

This table compares Ferrari and Blue Bird’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferrari $3.44 billion 6.28 $441.27 million N/A N/A
Blue Bird $990.60 million 0.47 $28.80 million $0.62 31.05

Ferrari has higher revenue and earnings than Blue Bird.

Insider & Institutional Ownership

31.9% of Ferrari shares are held by institutional investors. Comparatively, 94.8% of Blue Bird shares are held by institutional investors. 16.7% of Blue Bird shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Ferrari beats Blue Bird on 9 of the 13 factors compared between the two stocks.

Ferrari Company Profile

Ferrari NV, known as New Business Netherlands NV, is an Italy-based company, incorporated in the Netherlands, that is engaged in designing, manufacturing and selling sports cars under the Ferrari brand. Its products include nine sports car models, including seven sports cars: 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A; as well as two grand tourer (GT) cars: California T and FF. In addition, the Company produces a limited edition supercar, LaFerrari, and limited series and one-off cars. It licenses its Ferrari brand to various produces and retailers of goods. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China). The Company is active in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale. The Company operates as a subsidiary of Fiat Chrysler Automobiles NV.

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.

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