Contrasting Builders FirstSource (NYSE:BLDR) & Janus International Group (NYSE:JBI)

Janus International Group (NYSE:JBI) and Builders FirstSource (NYSE:BLDR) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Janus International Group and Builders FirstSource”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus International Group	$884.20 million	0.66	$53.80 million	$0.24	17.73
Builders FirstSource	$15.19 billion	0.38	$435.20 million	$0.91	59.20

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

Volatility and Risk

Janus International Group has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Janus International Group and Builders FirstSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janus International Group	3.68%	11.27%	4.88%
Builders FirstSource	0.71%	11.73%	4.32%

Analyst Ratings

This is a summary of current ratings and price targets for Janus International Group and Builders FirstSource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus International Group	1	2	1	0	2.00
Builders FirstSource	2	13	9	0	2.29

Janus International Group currently has a consensus target price of $7.30, suggesting a potential upside of 71.56%. Builders FirstSource has a consensus target price of $82.25, suggesting a potential upside of 52.68%. Given Janus International Group’s higher possible upside, research analysts clearly believe Janus International Group is more favorable than Builders FirstSource.

Insider & Institutional Ownership

88.8% of Janus International Group shares are held by institutional investors. Comparatively, 95.5% of Builders FirstSource shares are held by institutional investors. 4.7% of Janus International Group shares are held by insiders. Comparatively, 2.7% of Builders FirstSource shares are held by 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

Builders FirstSource beats Janus International Group on 9 of the 14 factors compared between the two stocks.

About Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.

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.