Builders FirstSource (NASDAQ:BLDR – Get Rating) and Home Depot (NYSE:HD – Get Rating) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.
This is a summary of recent ratings for Builders FirstSource and Home Depot, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Home Depot has a consensus price target of $323.25, indicating a potential upside of 11.04%. Given Home Depot’s higher possible upside, analysts clearly believe Home Depot is more favorable than Builders FirstSource.
Insider and Institutional Ownership
Risk & Volatility
Builders FirstSource has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Earnings & Valuation
This table compares Builders FirstSource and Home Depot’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Builders FirstSource||$22.73 billion||0.64||$2.75 billion||$15.50||7.36|
|Home Depot||$157.40 billion||1.87||$17.11 billion||$16.41||17.74|
Home Depot has higher revenue and earnings than Builders FirstSource. Builders FirstSource is trading at a lower price-to-earnings ratio than Home Depot, indicating that it is currently the more affordable of the two stocks.
This table compares Builders FirstSource and Home Depot’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Home Depot beats Builders FirstSource on 8 of the 13 factors compared between the two stocks.
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.
About Home Depot
The Home Depot, Inc. engages in the sale of building materials and home improvement products. Its products include building materials, home improvement products, lawn and garden products and decor products. The firm operates through the following geographical segments: U.S., Canada and Mexico. It offers home improvement installation services, and tool and equipment rental. The company was founded by Bernard Marcus, Arthur M. Blank, Kenneth Gerald Langone and Pat Farrah on June 29, 1978, and is headquartered at Atlanta, GA.
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