Blue Bird (NASDAQ:BLBD) and Miller Industries (NYSE:MLR) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Blue Bird and Miller Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Bird $990.60 million 0.52 $28.80 million $1.24 15.50
Miller Industries $615.10 million 0.50 $23.01 million N/A N/A

Blue Bird has higher revenue and earnings than Miller Industries.

Dividends

Miller Industries pays an annual dividend of $0.72 per share and has a dividend yield of 2.7%. Blue Bird does not pay a dividend. Miller Industries has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

96.5% of Blue Bird shares are held by institutional investors. Comparatively, 81.8% of Miller Industries shares are held by institutional investors. 3.4% of Blue Bird shares are held by company insiders. Comparatively, 3.9% of Miller Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Blue Bird and Miller Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Bird 3.02% -45.73% 14.57%
Miller Industries 4.66% 15.28% 9.54%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Bird 0 1 1 0 2.50
Miller Industries 0 0 0 0 N/A

Blue Bird presently has a consensus target price of $23.50, indicating a potential upside of 22.27%. Given Blue Bird’s higher possible upside, research analysts plainly believe Blue Bird is more favorable than Miller Industries.

Risk & Volatility

Blue Bird has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Miller Industries has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Summary

Blue Bird beats Miller Industries on 9 of the 14 factors compared between the two stocks.

About Blue Bird

Blue Bird Corporation designs, engineers, manufactures, and sells school buses and aftermarket parts in the United States, Canada, and internationally. The company operates through two segments, Buses and Aftermarket Parts. It offers Type C, Type D, and specialty buses, as well as Sigma, a bus for public transportation. The company sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments. It also distributes aftermarket parts of various makes. The company was founded in 1927 and is headquartered in Fort Valley, Georgia.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, engages in the manufacture and sale of towing and recovery equipment. It offers wreckers, such as conventional tow trucks and recovery vehicles that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms that are used to transport new or disabled vehicles and other equipment. The company also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other related applications. It markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. The company sells its products through independent distributors in the United States, Canada, Mexico, Europe, the Pacific Rim, the Middle East, South America, and Africa; and through prime contractors to governmental entities. Miller Industries, Inc. was founded in 1990 and is based in Ooltewah, Tennessee.

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