Head to Head Survey: PACCAR (NASDAQ:PCAR) & Blue Bird (NASDAQ:BLBD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PACCAR	9.88%	18.25%	7.69%
Blue Bird	8.16%	61.66%	21.26%

Valuation and Earnings

This table compares PACCAR and Blue Bird”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66 billion	1.56	$4.16 billion	$5.84	17.12
Blue Bird	$1.35 billion	1.37	$105.55 million	$3.50	16.68

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

Risk & Volatility

PACCAR has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0	8	4	2	2.57
Blue Bird	0	2	6	1	2.89

PACCAR presently has a consensus price target of $107.68, indicating a potential upside of 7.70%. Blue Bird has a consensus price target of $57.36, indicating a potential downside of 1.77%. Given PACCAR’s higher possible upside, analysts clearly believe PACCAR is more favorable than Blue Bird.

Institutional & Insider Ownership

64.9% of PACCAR shares are held by institutional investors. Comparatively, 93.6% of Blue Bird shares are held by institutional investors. 2.0% of PACCAR 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

PACCAR beats Blue Bird on 9 of the 15 factors compared between the two stocks.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

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.