Blue Bird (NASDAQ:BLBD) & Lonking (OTCMKTS:LKHLY) Financial Analysis

Lonking (OTCMKTS:LKHLY) and Blue Bird (NASDAQ:BLBD) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Valuation and Earnings

This table compares Lonking and Blue Bird”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lonking	N/A	N/A	N/A	N/A	N/A
Blue Bird	$1.13 billion	1.21	$23.81 million	$3.03	14.00

Blue Bird has higher revenue and earnings than Lonking.

Analyst Ratings

This is a summary of current ratings and price targets for Lonking and Blue Bird, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lonking	0	0	0	0	N/A
Blue Bird	0	2	6	0	2.75

Blue Bird has a consensus target price of $61.00, indicating a potential upside of 43.77%. Given Blue Bird’s higher probable upside, analysts plainly believe Blue Bird is more favorable than Lonking.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lonking	N/A	N/A	N/A
Blue Bird	7.65%	116.23%	23.50%

Institutional & Insider Ownership

93.6% of Blue Bird shares are held by institutional investors. 2.1% of Blue Bird shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Blue Bird beats Lonking on 8 of the 8 factors compared between the two stocks.

About Lonking

Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China and internationally. It operates through three segments: Sale of Construction Machinery, Finance Lease of Construction Machinery, and Financial Investment. The company also provides skid steer loaders; and diesel and electric forklifts. In addition, it offers components, such as axles, gear boxes, cylinders, gears, castings and forgings, and high-end hydraulic pumps and valves. Further, the company provides finance leasing for wheel loaders and other machinery. The company was founded in 1993 and is headquartered in Shanghai, the People's Republic of China.

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.