BlueLinx (NYSE:BXC – Get Free Report) and Titan Machinery (NASDAQ:TITN – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Analyst Ratings
This is a summary of current recommendations and price targets for BlueLinx and Titan Machinery, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BlueLinx | 0 | 0 | 1 | 0 | 3.00 |
| Titan Machinery | 0 | 1 | 4 | 0 | 2.80 |
BlueLinx currently has a consensus target price of $105.00, suggesting a potential upside of 13.69%. Titan Machinery has a consensus target price of $42.50, suggesting a potential upside of 43.53%. Given Titan Machinery’s higher possible upside, analysts clearly believe Titan Machinery is more favorable than BlueLinx.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BlueLinx | $4.45 billion | 0.19 | $296.18 million | $14.52 | 6.36 |
| Titan Machinery | $2.32 billion | 0.29 | $101.87 million | $5.19 | 5.71 |
BlueLinx has higher revenue and earnings than Titan Machinery. Titan Machinery is trading at a lower price-to-earnings ratio than BlueLinx, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
BlueLinx has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Titan Machinery has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.
Profitability
This table compares BlueLinx and Titan Machinery’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BlueLinx | 3.80% | 23.13% | 9.03% |
| Titan Machinery | 4.80% | 21.43% | 9.37% |
Institutional and Insider Ownership
87.0% of BlueLinx shares are held by institutional investors. Comparatively, 82.8% of Titan Machinery shares are held by institutional investors. 4.5% of BlueLinx shares are held by company insiders. Comparatively, 10.5% of Titan Machinery shares are held by company 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
BlueLinx beats Titan Machinery on 8 of the 14 factors compared between the two stocks.
About BlueLinx
BlueLinx Holdings Inc., together with its subsidiaries, distributes residential and commercial building products in the United States. The company distributes specialty products comprising engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products include lumber, plywood, oriented strand boards, rebars and remesh, and other wood products primarily that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves dealers, specialty distributors, national home centers, pro dealers, cooperatives, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.
About Titan Machinery
Titan Machinery Inc. owns and operates a network of full service agricultural and construction equipment stores in the United States and Europe. It operates through three segments: Agriculture, Construction, and International. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company's construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and energy and forestry operations equipment. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Idaho, Kansas, Missouri, Washington, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, and Ukraine, Europe. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.
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