Reviewing Blue Bird (NASDAQ:BLBD) & ECD Automotive Design (NASDAQ:ECDA)

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

Volatility and Risk

ECD Automotive Design has a beta of -0.58, indicating that its stock price is 158% less volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ECD Automotive Design	-51.29%	N/A	-73.94%
Blue Bird	8.16%	61.66%	21.26%

Analyst Ratings

This is a breakdown of recent ratings and price targets for ECD Automotive Design and Blue Bird, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECD Automotive Design	1	0	0	0	1.00
Blue Bird	0	1	6	0	2.86

Blue Bird has a consensus target price of $60.58, indicating a potential upside of 7.46%. Given Blue Bird’s stronger consensus rating and higher possible upside, analysts clearly believe Blue Bird is more favorable than ECD Automotive Design.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$25.17 million	0.15	-$10.77 million	($14.40)	-0.18
Blue Bird	$1.35 billion	1.33	$105.55 million	$3.50	16.11

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

Insider and Institutional Ownership

94.8% of ECD Automotive Design shares are owned by institutional investors. Comparatively, 93.6% of Blue Bird shares are owned by institutional investors. 52.6% of ECD Automotive Design shares are owned by insiders. Comparatively, 1.1% of Blue Bird shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Blue Bird beats ECD Automotive Design on 12 of the 14 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 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.