Analyzing Blue Bird (NASDAQ:BLBD) and XOS (NASDAQ:XOS)

XOS (NASDAQ:XOS) and Blue Bird (NASDAQ:BLBD) are both small-cap auto/tires/trucks 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.

Valuation and Earnings

This table compares XOS and Blue Bird”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$55.96 million	0.45	-$50.16 million	($6.17)	-0.49
Blue Bird	$1.35 billion	1.01	$105.55 million	$3.23	13.35

Blue Bird has higher revenue and earnings than XOS. XOS is trading at a lower price-to-earnings ratio than Blue Bird, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XOS	-101.36%	-117.14%	-45.90%
Blue Bird	7.97%	64.83%	20.87%

Volatility & Risk

XOS has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for XOS and Blue Bird, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	0	3	2	1	2.67
Blue Bird	0	2	6	0	2.75

XOS currently has a consensus price target of $8.75, suggesting a potential upside of 189.74%. Blue Bird has a consensus price target of $56.79, suggesting a potential upside of 31.69%. Given XOS’s higher probable upside, research analysts plainly believe XOS is more favorable than Blue Bird.

Insider and Institutional Ownership

12.9% of XOS shares are held by institutional investors. Comparatively, 93.6% of Blue Bird shares are held by institutional investors. 20.9% of XOS shares are held by company insiders. Comparatively, 1.1% of Blue Bird shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Blue Bird beats XOS on 11 of the 15 factors compared between the two stocks.

About XOS

Xos, Inc. is an electric mobility company engaged in manufacturing electric trucks. The firm designs and develops fully electric battery mobility systems specifically for commercial fleets. The company was founded by Dakota Semler and Giordano Sordoni on July 29, 2020 and is headquartered in Los Angeles, CA.

About Blue Bird

Blue Bird Corporation, together with its subsidiaries, designs, engineers, manufactures, and sells school buses in the United States, Canada, and internationally. The company operates through two segments, Bus and Parts. It offers Type C, Type D, and specialty buses; and alternative power options through its propane powered, gasoline powered, compressed natural gas powered, and electric powered school buses, as well as diesel engines. The company also sells replacement bus parts; and provides financing services and extended warranties related to its products. Blue Bird Corporation sells its products through drop ship and a network of dealers, as well as directly to fleet operators, the United States government, and state governments; independent service centers; and maintains a parts distribution center. Blue Bird Corporation was founded in 1927 and is headquartered in Macon, Georgia.