Builders FirstSource (NASDAQ: BLDR) is one of 24 public companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its competitors? We will compare Builders FirstSource to similar companies based on the strength of its earnings, analyst recommendations, institutional ownership, profitability, dividends, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Builders FirstSource and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Builders FirstSource 0 2 4 0 2.67
Builders FirstSource Competitors 56 431 741 15 2.58

Builders FirstSource currently has a consensus price target of $17.33, suggesting a potential downside of 3.27%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 14.50%. Given Builders FirstSource’s competitors higher probable upside, analysts clearly believe Builders FirstSource has less favorable growth aspects than its competitors.

Volatility and Risk

Builders FirstSource has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Builders FirstSource’s competitors have a beta of 1.46, indicating that their average stock price is 46% more volatile than the S&P 500.

Valuation and Earnings

This table compares Builders FirstSource and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Builders FirstSource $6.67 billion $367.24 million 11.79
Builders FirstSource Competitors $2.61 billion $332.50 million 27.58

Builders FirstSource has higher revenue and earnings than its competitors. Builders FirstSource is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Builders FirstSource and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Builders FirstSource 2.60% 43.83% 4.71%
Builders FirstSource Competitors -22.15% 907.52% 5.94%

Institutional & Insider Ownership

85.4% of Builders FirstSource shares are held by institutional investors. Comparatively, 85.6% of shares of all “Construction Supplies & Fixtures” companies are held by institutional investors. 14.6% of Builders FirstSource shares are held by company insiders. Comparatively, 6.1% of shares of all “Construction Supplies & Fixtures” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Builders FirstSource beats its competitors on 7 of the 13 factors compared.

About Builders FirstSource

Builders FirstSource, Inc. is a supplier and manufacturer of building materials, manufactured components and construction services to professional contractors, sub-contractors, remodelers and consumers. The Company’s operating segments include Northeast, Southeast, South and West. As of December 31, 2016, it operated at 400 locations in 40 states across the United States. It offers an integrated solution to its customers providing manufacturing, supply and installation of a range of structural and related building products. Its manufactured products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood that it designs, cuts and assembles for each home. It assembles interior and exterior doors into pre-hung units. Additionally, it supplies customers with offering of professional grade building products, such as dimensional lumber and lumber sheet goods, and various window, door and millwork lines.

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