Comparing BlueLinx (BXC) and Its Competitors

BlueLinx (NYSE:BXC) is one of 15 publicly-traded companies in the “BLDG PRD – WOOD” industry, but how does it weigh in compared to its peers? We will compare BlueLinx to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

90.8% of BlueLinx shares are owned by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are owned by institutional investors. 3.4% of BlueLinx shares are owned by company insiders. Comparatively, 4.4% of shares of all “BLDG PRD – WOOD” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BlueLinx and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BlueLinx	$2.95 billion	$53.12 million	16.48
BlueLinx Competitors	$4.93 billion	$298.49 million	-12.63

BlueLinx’s peers have higher revenue and earnings than BlueLinx. BlueLinx is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for BlueLinx and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	0	4	0	3.00
BlueLinx Competitors	186	1156	1091	47	2.40

BlueLinx currently has a consensus price target of $110.00, suggesting a potential upside of 49.03%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 23.64%. Given BlueLinx’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BlueLinx is more favorable than its peers.

Profitability

This table compares BlueLinx and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlueLinx	1.31%	4.90%	1.98%
BlueLinx Competitors	7.39%	10.15%	5.97%

Risk and Volatility

BlueLinx has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, BlueLinx’s peers have a beta of 1.49, indicating that their average share price is 49% more volatile than the S&P 500.

Summary

BlueLinx peers beat BlueLinx on 7 of the 13 factors compared.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.