Head-To-Head Analysis: Nikola (NASDAQ:NKLA) & Blue Bird (NASDAQ:BLBD)

Nikola (NASDAQ:NKLA) and Blue Bird (NASDAQ:BLBD) are both unclassified companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Nikola and Blue Bird, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nikola 0 1 1 0 2.50
Blue Bird 0 1 1 0 2.50

Nikola currently has a consensus target price of $62.00, suggesting a potential downside of 6.30%. Blue Bird has a consensus target price of $17.00, suggesting a potential upside of 14.25%. Given Blue Bird’s higher probable upside, analysts clearly believe Blue Bird is more favorable than Nikola.

Profitability

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

Net Margins Return on Equity Return on Assets
Nikola N/A 35.91% 0.75%
Blue Bird 2.37% -61.92% 10.59%

Volatility & Risk

Nikola has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nikola N/A N/A $2.73 million N/A N/A
Blue Bird $1.02 billion 0.39 $24.30 million $1.49 9.99

Blue Bird has higher revenue and earnings than Nikola.

Institutional and Insider Ownership

72.0% of Nikola shares are owned by institutional investors. Comparatively, 89.4% of Blue Bird shares are owned by institutional investors. 15.8% of Nikola shares are owned by insiders. Comparatively, 2.7% of Blue Bird shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Blue Bird beats Nikola on 7 of the 9 factors compared between the two stocks.

About Nikola

Nikola Corporation operates as an integrated zero emissions transportation systems provider. It designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure. The company also develops electric vehicle solutions for military and outdoor recreational applications. Nikola Corporation was founded in 2015 and is headquartered in Phoenix, Arizona.

About Blue Bird

Blue Bird Corporation designs, engineers, manufactures, and sells school buses and related parts in the United States, Canada, and internationally. It operates through two segments, Bus and Parts. The company offers Type C, Type D, and specialty buses; and alternative fuel applications through its propane-powered, gasoline-powered, compressed natural gas-powered, and electric powered school buses. It sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments; and a parts distribution center. The company was founded in 1927 and is headquartered in Macon, Georgia.

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