BlueLinx (NYSE:BXC) versus Worthington Enterprises (NYSE:WOR) Critical Contrast

Worthington Enterprises (NYSE:WOR) and BlueLinx (NYSE:BXC) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Insider and Institutional Ownership

51.6% of Worthington Enterprises shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 3.4% of Worthington Enterprises shares are held by insiders. Comparatively, 3.8% of BlueLinx shares are held by 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 Ratings

This is a breakdown of current ratings and recommmendations for Worthington Enterprises and BlueLinx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	1	1	2	1	2.60
BlueLinx	0	1	2	0	2.67

Worthington Enterprises currently has a consensus target price of $62.33, indicating a potential upside of 11.46%. BlueLinx has a consensus target price of $91.00, indicating a potential upside of 23.84%. Given BlueLinx’s stronger consensus rating and higher probable upside, analysts clearly believe BlueLinx is more favorable than Worthington Enterprises.

Valuation & Earnings

This table compares Worthington Enterprises and BlueLinx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.20 billion	2.32	$96.05 million	$2.13	26.26
BlueLinx	$2.95 billion	0.20	$53.12 million	$3.37	21.80

Worthington Enterprises has higher earnings, but lower revenue than BlueLinx. BlueLinx is trading at a lower price-to-earnings ratio than Worthington Enterprises, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Worthington Enterprises has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Profitability

This table compares Worthington Enterprises and BlueLinx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	8.91%	17.70%	9.80%
BlueLinx	0.96%	3.48%	1.39%

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.

About BlueLinx

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.