LL Flooring (NYSE:LL – Get Rating) and Builders FirstSource (NASDAQ:BLDR – Get Rating) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
85.8% of LL Flooring shares are held by institutional investors. Comparatively, 97.2% of Builders FirstSource shares are held by institutional investors. 2.9% of LL Flooring shares are held by insiders. Comparatively, 1.3% of Builders FirstSource shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for LL Flooring and Builders FirstSource, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LL Flooring presently has a consensus price target of $22.00, suggesting a potential upside of 58.05%. Given LL Flooring’s higher probable upside, research analysts clearly believe LL Flooring is more favorable than Builders FirstSource.
Valuation & Earnings
This table compares LL Flooring and Builders FirstSource’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LL Flooring||$1.15 billion||0.36||$41.70 million||$1.42||9.80|
|Builders FirstSource||$19.89 billion||0.54||$1.73 billion||$8.51||7.19|
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.
Volatility and Risk
LL Flooring has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.
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|
Builders FirstSource beats LL Flooring on 8 of the 12 factors compared between the two stocks.
LL Flooring Company Profile (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 February 18, 2022, we operated 428 stores in the Unites 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.
Builders FirstSource Company Profile (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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