LiveWire Group (NYSE:LVWR) and Blue Bird (NASDAQ:BLBD) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LiveWire Group	-320.10%	-90.76%	-67.57%
Blue Bird	8.16%	61.66%	21.26%

Risk & Volatility

LiveWire Group has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

0.9% of LiveWire Group shares are owned by institutional investors. Comparatively, 93.6% of Blue Bird shares are owned by institutional investors. 2.1% of LiveWire Group shares are owned by insiders. Comparatively, 1.1% of Blue Bird shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for LiveWire Group and Blue Bird, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LiveWire Group	1	0	0	0	1.00
Blue Bird	0	1	7	0	2.88

Blue Bird has a consensus target price of $63.42, suggesting a potential upside of 24.96%. Given Blue Bird’s stronger consensus rating and higher probable upside, analysts clearly believe Blue Bird is more favorable than LiveWire Group.

Valuation & Earnings

This table compares LiveWire Group and Blue Bird”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LiveWire Group	$25.08 million	31.40	-$93.93 million	($0.39)	-9.91
Blue Bird	$1.35 billion	1.19	$105.55 million	$3.50	14.50

Blue Bird has higher revenue and earnings than LiveWire Group. LiveWire 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 LiveWire Group on 11 of the 14 factors compared between the two stocks.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.

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.