Jewett-Cameron Trading (NASDAQ:JCTC) vs. Builders FirstSource (NYSE:BLDR) Critical Comparison

Jewett-Cameron Trading (NASDAQ:JCTC) and Builders FirstSource (NYSE:BLDR) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares Jewett-Cameron Trading and Builders FirstSource”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jewett-Cameron Trading	$46.61 million	0.33	$720,000.00	($0.35)	-12.51
Builders FirstSource	$16.40 billion	0.90	$1.54 billion	$9.06	14.40

Builders FirstSource has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Builders FirstSource, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Jewett-Cameron Trading and Builders FirstSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jewett-Cameron Trading	-2.66%	-5.00%	-4.44%
Builders FirstSource	6.57%	30.54%	12.68%

Insider & Institutional Ownership

26.0% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 95.5% of Builders FirstSource shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by insiders. Comparatively, 1.8% of Builders FirstSource shares are held by 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.

Volatility & Risk

Jewett-Cameron Trading has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Jewett-Cameron Trading and Builders FirstSource, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jewett-Cameron Trading	0	0	0	0	0.00
Builders FirstSource	0	4	15	1	2.85

Builders FirstSource has a consensus price target of $190.72, indicating a potential upside of 46.22%. Given Builders FirstSource’s stronger consensus rating and higher probable upside, analysts clearly believe Builders FirstSource is more favorable than Jewett-Cameron Trading.

Summary

Builders FirstSource beats Jewett-Cameron Trading on 15 of the 15 factors compared between the two stocks.

About Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.

About Builders FirstSource

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name. The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; turn-key framing, shell construction, design assistance, and professional installation services. In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.