Otis Worldwide (NYSE:OTIS) versus Blue Bird (NASDAQ:BLBD) Critical Review

Blue Bird (NASDAQ:BLBD – Get Free Report) and Otis Worldwide (NYSE:OTIS – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Blue Bird 17.48% 39.97% 18.93%
Otis Worldwide 10.17% -28.50% 14.39%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Blue Bird and Otis Worldwide, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Bird 1 0 7 1 2.89
Otis Worldwide 2 3 4 0 2.22

Blue Bird presently has a consensus target price of $85.33, indicating a potential upside of 48.74%. Otis Worldwide has a consensus target price of $91.00, indicating a potential upside of 26.28%. Given Blue Bird’s stronger consensus rating and higher possible upside, analysts clearly believe Blue Bird is more favorable than Otis Worldwide.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Bird $1.61 billion 1.12 $127.72 million $8.22 6.98
Otis Worldwide $14.91 billion 1.84 $1.38 billion $3.89 18.52

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

Risk & Volatility

Blue Bird has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

93.6% of Blue Bird shares are owned by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are owned by institutional investors. 1.1% of Blue Bird shares are owned by company insiders. Comparatively, 0.1% of Otis Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Blue Bird beats Otis Worldwide on 11 of the 15 factors compared between the two stocks.

About Blue Bird

(Get Free Report)

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.

About Otis Worldwide

(Get Free Report)

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.

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