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
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.
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|
|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.
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|
|Floor & Decor||6.99%||19.35%||7.11%|
Builders FirstSource beats Floor & Decor on 8 of the 13 factors compared between the two stocks.
About Builders FirstSource
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
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.
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