Builders FirstSource (BLDR) and Its Peers Head-To-Head Analysis

Builders FirstSource (NYSE:BLDR) is one of 93 public companies in the “Building Products” industry, but how does it contrast to its competitors? We will compare Builders FirstSource to related companies based on the strength of its analyst recommendations, dividends, profitability, valuation, institutional ownership, risk and earnings.

Volatility and Risk

Builders FirstSource has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Builders FirstSource’s competitors have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Builders FirstSource	$15.19 billion	$435.20 million	183.03
Builders FirstSource Competitors	$4.02 billion	$4.66 billion	37.97

Builders FirstSource has higher revenue, but lower earnings than its competitors. Builders FirstSource 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 Builders FirstSource and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Builders FirstSource	0.71%	11.73%	4.32%
Builders FirstSource Competitors	3.72%	-28.21%	5.11%

Analyst Recommendations

This is a summary of recent ratings and target prices for Builders FirstSource and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Builders FirstSource	2	16	7	0	2.20
Builders FirstSource Competitors	734	3920	5047	238	2.48

Builders FirstSource currently has a consensus target price of $75.55, indicating a potential upside of 11.56%. As a group, “Building Products” companies have a potential upside of 25.93%. Given Builders FirstSource’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Builders FirstSource has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

95.5% of Builders FirstSource shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are owned by institutional investors. 2.7% of Builders FirstSource shares are owned by insiders. Comparatively, 10.2% of shares of all “Building Products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Builders FirstSource competitors beat Builders FirstSource on 9 of the 13 factors compared.

Builders FirstSource Company Profile

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.