Head-To-Head Review: BlueLinx (BXC) versus Its Rivals

BlueLinx (NYSE:BXC) is one of 15 public companies in the “BLDG PRD – WOOD” industry, but how does it contrast to its competitors? We will compare BlueLinx to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, profitability, dividends and institutional ownership.

Valuation & Earnings

This table compares BlueLinx and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BlueLinx	$2.95 billion	$53.12 million	16.55
BlueLinx Competitors	$4.92 billion	$297.37 million	-12.95

BlueLinx’s competitors have higher revenue and earnings than BlueLinx. BlueLinx 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.

Insider and Institutional Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 3.8% of BlueLinx shares are held by insiders. Comparatively, 4.4% of shares of all “BLDG PRD – WOOD” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BlueLinx and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	1	3	0	2.75
BlueLinx Competitors	193	1162	1101	48	2.40

BlueLinx currently has a consensus target price of $110.00, indicating a potential upside of 48.35%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 22.02%. Given BlueLinx’s stronger consensus rating and higher possible upside, equities analysts clearly believe BlueLinx is more favorable than its competitors.

Volatility & Risk

BlueLinx has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, BlueLinx’s competitors have a beta of 1.43, indicating that their average stock price is 43% more volatile than the S&P 500.

Profitability

This table compares BlueLinx and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlueLinx	1.31%	4.90%	1.98%
BlueLinx Competitors	7.65%	10.27%	6.04%

Summary

BlueLinx competitors beat BlueLinx on 7 of the 13 factors compared.

BlueLinx Company Profile

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products 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 national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.