Financial Comparison: UFP Industries (UFPI) & Its Peers

UFP Industries (NASDAQ:UFPI) is one of 13 publicly-traded companies in the “BLDG PRD – WOOD” industry, but how does it weigh in compared to its competitors? We will compare UFP Industries to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Volatility & Risk

UFP Industries has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, UFP Industries’ competitors have a beta of 1.51, suggesting that their average stock price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for UFP Industries and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UFP Industries	0	1	3	0	2.75
UFP Industries Competitors	173	1081	1056	46	2.41

UFP Industries currently has a consensus target price of $143.00, indicating a potential upside of 50.64%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 32.27%. Given UFP Industries’ stronger consensus rating and higher possible upside, analysts plainly believe UFP Industries is more favorable than its competitors.

Dividends

UFP Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.5%. UFP Industries pays out 22.9% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.9% and pay out 36.7% of their earnings in the form of a dividend. UFP Industries has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares UFP Industries and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UFP Industries	$6.65 billion	$414.56 million	15.54
UFP Industries Competitors	$5.23 billion	$314.14 million	-17.57

UFP Industries has higher revenue and earnings than its competitors. UFP Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares UFP Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UFP Industries	5.64%	11.78%	9.06%
UFP Industries Competitors	7.58%	9.69%	5.75%

Institutional and Insider Ownership

81.8% of UFP Industries shares are held by institutional investors. Comparatively, 85.7% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 2.6% of UFP Industries shares are held by company insiders. Comparatively, 1.4% of shares of all “BLDG PRD – WOOD” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

UFP Industries beats its competitors on 10 of the 15 factors compared.

About UFP Industries

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.