Floor & Decor (NYSE:FND) & Builders FirstSource (NASDAQ:BLDR) Head-To-Head Review

Builders FirstSource (NASDAQ:BLDR – Get Rating) and Floor & Decor (NYSE:FND – Get Rating) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Builders FirstSource and Floor & Decor’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Builders FirstSource	$22.73 billion	0.50	$2.75 billion	$16.65	4.95
Floor & Decor	$4.26 billion	2.26	$298.20 million	$2.77	32.70

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

Risk and Volatility

Builders FirstSource has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

94.7% of Builders FirstSource shares are held by institutional investors. 1.4% of Builders FirstSource shares are held by company insiders. Comparatively, 2.7% of Floor & Decor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Builders FirstSource and Floor & Decor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Builders FirstSource	0	0	0	0	N/A
Floor & Decor	1	9	9	0	2.42

Floor & Decor has a consensus target price of $94.61, suggesting a potential upside of 4.45%. Given Floor & Decor’s higher probable upside, analysts plainly believe Floor & Decor is more favorable than Builders FirstSource.

Profitability

This table compares Builders FirstSource and Floor & Decor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Builders FirstSource	12.10%	59.80%	26.44%
Floor & Decor	6.99%	19.35%	7.11%

Summary

Builders FirstSource beats Floor & Decor on 8 of the 13 factors compared between the two stocks.

About Builders FirstSource

(Get Rating)

Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components and construction services to professional homebuilders, subcontractors, remodelers and consumers. Its products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The company was founded by Kevin P. O’Meara, Donald F. McAleenan and John D. Roach in March 1998 and is headquartered in Dallas, TX.

About Floor & Decor

(Get Rating)

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.