Critical Comparison: LL Flooring (NYSE:LL) vs. Builders FirstSource (NASDAQ:BLDR)


LL Flooring (NYSE:LLGet Rating) and Builders FirstSource (NASDAQ:BLDRGet Rating) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

This table compares LL Flooring and Builders FirstSource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LL Flooring 3.06% 13.10% 5.66%
Builders FirstSource 10.24% 47.82% 22.66%

Institutional and Insider Ownership

86.3% of LL Flooring shares are held by institutional investors. Comparatively, 99.4% of Builders FirstSource shares are held by institutional investors. 2.6% of LL Flooring shares are held by company insiders. Comparatively, 1.3% of Builders FirstSource shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares LL Flooring and Builders FirstSource’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LL Flooring $1.15 billion 0.29 $41.70 million $1.20 9.28
Builders FirstSource $19.89 billion 0.59 $1.73 billion $11.24 5.94

Builders FirstSource has higher revenue and earnings than LL Flooring. Builders FirstSource is trading at a lower price-to-earnings ratio than LL Flooring, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for LL Flooring and Builders FirstSource, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LL Flooring 0 1 0 0 2.00
Builders FirstSource 0 0 0 0 N/A

LL Flooring presently has a consensus target price of $22.00, suggesting a potential upside of 97.66%. Given LL Flooring’s higher possible upside, equities analysts clearly believe LL Flooring is more favorable than Builders FirstSource.

Volatility & Risk

LL Flooring has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Summary

Builders FirstSource beats LL Flooring on 8 of the 12 factors compared between the two stocks.

About LL Flooring (Get Rating)

LL Flooring Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories. The company offers hardwood species; waterproof vinyl plank, engineered hardwood, laminate, bamboo, porcelain tile, and cork products; and flooring enhancements and accessories, including moldings, underlayment, adhesives, and tools under the Bellawood and Coreluxe brand names. It also provides in-home delivery and installation services. The company primarily serves homeowners, or to professionals on behalf of homeowners. As of April 4, 2022, it operated 431 stores in the United States. The company also offers its products through its customer relationship center, digital platform, and catalogs. The company was formerly known as Lumber Liquidators Holdings, Inc. and changed its name to LL Flooring Holdings, Inc. in January 2022. LL Flooring Holdings, Inc. was founded in 1994 and is headquartered in Richmond, Virginia.

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.



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