Analyzing Builders FirstSource (NASDAQ:BLDR) & Floor & Decor (NYSE:FND)


Builders FirstSource (NASDAQ:BLDRGet Rating) and Floor & Decor (NYSE:FNDGet Rating) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

Builders FirstSource has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.

Profitability

This table compares Builders FirstSource and Floor & Decor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Builders FirstSource 8.67% 39.10% 19.57%
Floor & Decor 8.25% 21.65% 7.67%

Earnings & Valuation

This table compares Builders FirstSource and Floor & Decor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Builders FirstSource $19.89 billion 0.55 $1.73 billion $8.51 7.24
Floor & Decor $3.43 billion 2.46 $283.23 million $2.63 30.31

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.

Institutional and Insider Ownership

97.2% of Builders FirstSource shares are held by institutional investors. Comparatively, 98.2% of Floor & Decor shares are held by institutional investors. 1.3% of Builders FirstSource shares are held by company insiders. Comparatively, 2.7% of Floor & Decor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Builders FirstSource and Floor & Decor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Builders FirstSource 0 0 0 0 N/A
Floor & Decor 0 2 10 0 2.83

Floor & Decor has a consensus price target of $127.25, suggesting a potential upside of 59.62%. Given Floor & Decor’s higher probable upside, analysts clearly believe Floor & Decor is more favorable than Builders FirstSource.

Summary

Builders FirstSource beats Floor & Decor on 7 of the 13 factors compared between the two stocks.

About Builders FirstSource (Get Rating)

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

About Floor & Decor (Get Rating)

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories. The company’s stores offer tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative and installation accessories. It serves professional installers, commercial businesses, and do it yourself customers. As of December 30, 2021, the company operated 160 warehouse stores and two design studios in 33 states. It also sells products through its Website, FloorandDecor.com. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.



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