Head to Head Comparison: Boise Cascade (BCC) and The Competition

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

Dividends

Boise Cascade pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Boise Cascade pays out 25.0% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.9% and pay out 105.9% of their earnings in the form of a dividend. Boise Cascade has increased its dividend for 6 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boise Cascade	2.07%	6.54%	4.09%
Boise Cascade Competitors	10.27%	4.59%	3.76%

Institutional & Insider Ownership

96.2% of Boise Cascade shares are held by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 1.1% of Boise Cascade shares are held by insiders. Comparatively, 1.6% of shares of all “BLDG PRD – WOOD” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Boise Cascade and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Boise Cascade	$6.40 billion	$132.84 million	20.42
Boise Cascade Competitors	$4.73 billion	$261.89 million	22.46

Boise Cascade has higher revenue, but lower earnings than its competitors. Boise Cascade is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Boise Cascade has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Boise Cascade’s competitors have a beta of 1.41, suggesting that their average stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Boise Cascade and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boise Cascade	1	1	5	0	2.57
Boise Cascade Competitors	300	1299	1199	49	2.35

Boise Cascade currently has a consensus target price of $105.67, indicating a potential upside of 47.04%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 25.92%. Given Boise Cascade’s stronger consensus rating and higher possible upside, analysts clearly believe Boise Cascade is more favorable than its competitors.

Summary

Boise Cascade beats its competitors on 8 of the 15 factors compared.

Boise Cascade Company Profile

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.