Blue Bird (NASDAQ:BLBD – Get Free Report) and Otis Worldwide (NYSE:OTIS – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a summary of current ratings and target prices 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 currently has a consensus price target of $85.33, indicating a potential upside of 51.27%. Otis Worldwide has a consensus price target of $91.00, indicating a potential upside of 34.37%. Given Blue Bird’s stronger consensus rating and higher probable upside, research analysts plainly believe Blue Bird is more favorable than Otis Worldwide.
Risk and Volatility
Institutional and Insider Ownership
93.6% of Blue Bird shares are held by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are held by institutional investors. 1.1% of Blue Bird shares are held by insiders. Comparatively, 0.1% of Otis Worldwide shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Blue Bird and Otis Worldwide”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blue Bird | $1.48 billion | 1.19 | $127.72 million | $8.22 | 6.86 |
| Otis Worldwide | $14.43 billion | 1.79 | $1.38 billion | $3.89 | 17.41 |
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.
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% |
Summary
Blue Bird beats Otis Worldwide on 11 of the 15 factors compared between the two stocks.
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.
About Otis Worldwide
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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