Critical Review: VinFast Auto (NASDAQ:VFS) versus Blue Bird (NASDAQ:BLBD)

Blue Bird (NASDAQ:BLBD) and VinFast Auto (NASDAQ:VFS) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Blue Bird and VinFast Auto, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Bird	0	1	6	0	2.86
VinFast Auto	1	1	3	0	2.40

Blue Bird presently has a consensus price target of $64.60, indicating a potential upside of 31.76%. VinFast Auto has a consensus price target of $5.83, indicating a potential upside of 70.07%. Given VinFast Auto’s higher possible upside, analysts plainly believe VinFast Auto is more favorable than Blue Bird.

Insider & Institutional Ownership

93.6% of Blue Bird shares are held by institutional investors. 1.1% of Blue Bird shares are held by company insiders. Comparatively, 16.2% of VinFast Auto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Blue Bird and VinFast Auto”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Bird	$1.48 billion	1.05	$127.72 million	$3.88	12.64
VinFast Auto	$1.81 billion	4.44	-$3.18 billion	($1.60)	-2.14

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

Volatility & Risk

Blue Bird has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Bird	8.63%	62.87%	23.37%
VinFast Auto	-137.48%	N/A	-54.72%

Summary

Blue Bird beats VinFast Auto on 10 of the 14 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 VinFast Auto

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.