Analyzing Builders FirstSource (NASDAQ:BLDR) and Jewett-Cameron Trading (NASDAQ:JCTCF)

Jewett-Cameron Trading (NASDAQ:JCTCFGet Rating) and Builders FirstSource (NASDAQ:BLDRGet Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Jewett-Cameron Trading and Builders FirstSource’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jewett-Cameron Trading $57.50 million 0.46 $3.45 million $0.84 9.10
Builders FirstSource $19.89 billion 0.55 $1.73 billion $8.51 7.24

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

Volatility & Risk

Jewett-Cameron Trading has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.

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 4.57% 12.86% 9.38%
Builders FirstSource 8.67% 39.10% 19.57%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Jewett-Cameron Trading and Builders FirstSource, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jewett-Cameron Trading 0 0 0 0 N/A
Builders FirstSource 0 0 0 0 N/A

Institutional and Insider Ownership

29.4% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 97.2% of Builders FirstSource shares are held by institutional investors. 1.1% of Jewett-Cameron Trading shares are held by company insiders. Comparatively, 1.3% of Builders FirstSource shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Builders FirstSource beats Jewett-Cameron Trading on 10 of the 11 factors compared between the two stocks.

About Jewett-Cameron Trading (Get Rating)

Jewett-Cameron Trading Company Ltd., through its subsidiaries, engages in the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers. The company operates through three segments: Industrial Wood Products; Pet, Fencing and Other; and Seed Processing and Sales. The Industrial Wood Products segment processes and distributes industrial wood products. It offers treated plywood to the transportation industry. The Pet, Fencing and Other segment is involved in the wholesale of pet products, including various enclosures/kennels, beds, bowls, and compostable dog waste bags; fencing and containment products, such as post systems, wood and other fencing infill products, and kitted security fencing solutions; and other products comprising garden, landscaping, and miscellaneous products for the home. The Seed Processing and Sales segment processes and distributes agricultural seeds to distributors, as well as cleaning seeds. The company markets its products under the Lucky Dog, Adjust-A-Gate, Fit-Right, Perimeter Patrol, Lifetime Post, Early Start, Spring Gardner, Greenline, and Weatherguard brands. It operates in the United States, Canada, Mexico, Latin America, the Caribbean, Europe, and the Asia Pacific. The company was founded in 1953 and is headquartered in North Plains, Oregon.

About Builders FirstSource (Get Rating)

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, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

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