Head-To-Head Review: Blue Bird (NASDAQ:BLBD) versus Lindsay (NYSE:LNN)

Lindsay (NYSE:LNN) and Blue Bird (NASDAQ:BLBD) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Volatility and Risk

Lindsay has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lindsay 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
Lindsay	$635.86 million	1.70	$55.65 million	$5.32	20.01
Blue Bird	$1.48 billion	1.22	$127.72 million	$8.22	7.02

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lindsay	0	3	0	0	2.00
Blue Bird	1	0	7	1	2.89

Lindsay currently has a consensus target price of $119.00, indicating a potential upside of 11.80%. Blue Bird has a consensus target price of $85.33, indicating a potential upside of 47.89%. Given Blue Bird’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Bird is more favorable than Lindsay.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lindsay	8.75%	10.96%	6.74%
Blue Bird	17.48%	39.97%	18.93%

Insider and Institutional Ownership

89.9% of Lindsay shares are owned by institutional investors. Comparatively, 93.6% of Blue Bird shares are owned by institutional investors. 1.8% of Lindsay shares are owned by insiders. Comparatively, 1.1% of Blue Bird shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Blue Bird beats Lindsay on 12 of the 15 factors compared between the two stocks.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. It operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot brand; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. It also offers repair and replacement parts for its irrigation systems and controls, and diameter steel tubing; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand. The Infrastructure segment provides Road Zipper System comprised of T-shaped concrete and steel barriers, barrier transfer machine, and variable length barriers which are used for highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and repairs to tunnels and bridges. Additionally, it offers redirective and non-redirective crash cushions to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards; specialty barriers; preformed tape and road safety accessory products, as well as rail products, such as signals and lights, structures, foundations, junction boxes, and signs. Lindsay Corporation was founded in 1955 and is headquartered in Omaha, Nebraska.

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.