Floor & Decor (NYSE:FND – Get Rating) and Builders FirstSource (NASDAQ:BLDR – Get Rating) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Risk & Volatility
Floor & Decor has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
This table compares Floor & Decor and Builders FirstSource’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%|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Floor & Decor||1||9||8||0||2.39|
Floor & Decor presently has a consensus price target of $91.59, indicating a potential upside of 0.07%. Given Floor & Decor’s higher possible upside, research analysts clearly believe Floor & Decor is more favorable than Builders FirstSource.
Insider and Institutional Ownership
94.7% of Builders FirstSource shares are held by institutional investors. 2.7% of Floor & Decor shares are held by insiders. Comparatively, 1.4% of Builders FirstSource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Floor & Decor and Builders FirstSource’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Floor & Decor||$4.26 billion||2.28||$298.20 million||$2.77||33.04|
|Builders FirstSource||$22.73 billion||0.49||$2.75 billion||$16.65||4.81|
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.
Builders FirstSource beats Floor & Decor on 8 of the 13 factors compared between the two stocks.
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.
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.
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