Head-To-Head Contrast: Blue Bird (NASDAQ:BLBD) & Tennant (NYSE:TNC)

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

Valuation and Earnings

This table compares Tennant 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
Tennant	$1.20 billion	1.04	$43.80 million	$1.34	55.07
Blue Bird	$1.48 billion	1.21	$127.72 million	$8.22	6.96

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

Risk and Volatility

Tennant has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Blue Bird has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Insider & Institutional Ownership

93.3% of Tennant shares are held by institutional investors. Comparatively, 93.6% of Blue Bird shares are held by institutional investors. 3.5% of Tennant shares are held by company insiders. Comparatively, 1.1% of Blue Bird shares are held by company 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 Ratings

This is a breakdown of current recommendations and price targets for Tennant and Blue Bird, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	0	3	2	0	2.40
Blue Bird	1	0	6	1	2.88

Tennant presently has a consensus target price of $87.00, indicating a potential upside of 17.90%. Blue Bird has a consensus target price of $85.33, indicating a potential upside of 49.22%. Given Blue Bird’s stronger consensus rating and higher possible upside, analysts plainly believe Blue Bird is more favorable than Tennant.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tennant	1.85%	13.30%	5.78%
Blue Bird	17.48%	39.97%	18.93%

Summary

Blue Bird beats Tennant on 13 of the 15 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

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.