Analyzing Guangzhou Automobile Group (OTCMKTS:GNZUF) and Blue Bird (NASDAQ:BLBD)

Guangzhou Automobile Group (OTCMKTS:GNZUFGet Free Report) and Blue Bird (NASDAQ:BLBDGet Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Guangzhou Automobile Group and Blue Bird, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guangzhou Automobile Group 0 1 0 0 2.00
Blue Bird 0 0 7 0 3.00

Blue Bird has a consensus price target of $34.58, indicating a potential downside of 4.60%. Given Blue Bird’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Bird is more favorable than Guangzhou Automobile Group.

Insider & Institutional Ownership

14.0% of Guangzhou Automobile Group shares are held by institutional investors. 2.1% of Blue Bird shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Guangzhou Automobile Group N/A N/A N/A
Blue Bird 5.04% 223.85% 17.44%

Earnings and Valuation

This table compares Guangzhou Automobile Group 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
Guangzhou Automobile Group N/A N/A N/A $0.49 0.90
Blue Bird $1.13 billion 1.03 $23.81 million $1.90 19.08

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

Summary

Blue Bird beats Guangzhou Automobile Group on 10 of the 11 factors compared between the two stocks.

About Guangzhou Automobile Group

(Get Free Report)

Guangzhou Automobile Group Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of vehicles and motorcycles, and parts and components; and provision of commercial and financial services in Mainland China and internationally. The company operates through two segments, Vehicles and Related Operations, and Others. It offers large to medium sized passenger vehicles, light and heavy trucks, construction vehicles, and energy vehicles; motorcycles comprising standard motorcycles, sport bikes, scooters, etc.; and auto-parts and components, including engines, gearboxes, car seats, micro motors, shifters, electric controllers, and interior and exterior decorations. The company also provides financial investment, insurance, insurance brokerage, financial leasing, automobile credit, and other related services; and engages in the businesses of vehicle sales, logistics, international trading, second-hand vehicles, end-of-life vehicles disassembling, resources recycling, supporting services, digitalization and mobility transportation services, etc. In addition, it offers investment management services; and engages in the trade of steel. The company was incorporated in 1997 and is headquartered in Guangzhou, the People's Republic of China. Guangzhou Automobile Group Co., Ltd. is a subsidiary of Guangzhou Automobile Industry Group Co., Ltd.

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 fulfillment 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. The company was formerly known as Hennessy Capital Acquisition Corp and changed its name to Blue Bird Corporation. Blue Bird Corporation was founded in 1927 and is headquartered in Macon, Georgia.

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