Contrasting Blue Bird (NASDAQ:BLBD) & Polaris (NYSE:PII)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Polaris	-6.51%	-0.05%	-0.01%
Blue Bird	8.65%	57.60%	22.66%

Volatility & Risk

Polaris has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Polaris and Blue Bird”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polaris	$7.15 billion	0.40	-$465.50 million	($8.18)	-6.16
Blue Bird	$1.48 billion	1.14	$127.72 million	$3.96	13.48

Blue Bird has lower revenue, but higher earnings than Polaris. Polaris 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 & Institutional Ownership

88.1% of Polaris shares are owned by institutional investors. Comparatively, 93.6% of Blue Bird shares are owned by institutional investors. 3.1% of Polaris shares are owned by insiders. Comparatively, 1.1% of Blue Bird shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Polaris and Blue Bird, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polaris	1	12	0	0	1.92
Blue Bird	0	1	6	0	2.86

Polaris presently has a consensus target price of $58.45, indicating a potential upside of 16.02%. Blue Bird has a consensus target price of $67.20, indicating a potential upside of 25.89%. Given Blue Bird’s stronger consensus rating and higher probable upside, analysts clearly believe Blue Bird is more favorable than Polaris.

Summary

Blue Bird beats Polaris on 12 of the 14 factors compared between the two stocks.

About Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.

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.