Head-To-Head Analysis: Vroom (NASDAQ:VRM) versus Blue Bird (NASDAQ:BLBD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vroom	-37.16%	-51.07%	-6.63%
Blue Bird	8.91%	53.68%	22.19%

Volatility & Risk

Vroom has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vroom	$178.83 million	0.26	-$7.96 million	($12.76)	-0.70
Blue Bird	$1.48 billion	1.52	$127.72 million	$4.07	17.45

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

Institutional and Insider Ownership

25.8% of Vroom shares are owned by institutional investors. Comparatively, 93.6% of Blue Bird shares are owned by institutional investors. 2.9% of Vroom shares are owned by company insiders. Comparatively, 1.1% of Blue Bird shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Vroom and Blue Bird, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vroom	1	0	0	0	1.00
Blue Bird	1	1	6	0	2.63

Blue Bird has a consensus target price of $77.80, indicating a potential upside of 9.52%. Given Blue Bird’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Bird is more favorable than Vroom.

Summary

Blue Bird beats Vroom on 13 of the 14 factors compared between the two stocks.

About Vroom

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.

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.