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


FirstSource constructors (NASDAQ: BLDRGet a rating) and Floor & Decoration (NYSE: FNDGet a rating) are both retail/wholesale companies, but which is the most successful company? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility and risk

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

Profitability

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

Net margins Return on equity return on assets
FirstSource Builders 8.67% 39.10% 19.57%
Floor and decor 8.25% 21.65% 7.67%

Benefits and evaluation

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
FirstSource Builders $19.89 billion 0.55 $1.73 billion $8.51 7.24
Floor and decor $3.43 billion 2.46 $283.23 million $2.63 30.31

Builders FirstSource has higher revenue and profit than Floor & Decor. Builders FirstSource trades 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. By comparison, 98.2% of Floor & Decor’s shares are held by institutional investors. 1.3% of Builders FirstSource stock is held by insiders of the company. By comparison, 2.7% of Floor & Decor’s stock is held by company insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
FirstSource Builders 0 0 0 0 N / A
Floor and decor 0 2 ten 0 2.83

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

Summary

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

About Builders FirstSource (Get a rating)

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, fabricated components and construction services to professional home builders, contractors, remodelers and consumers in the United States. It offers lumber and lumber sheet products including dimensional lumber, plywood and oriented strand board products that are used in the framing of on-site homes; manufactured products, such as wooden floors 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 trim and custom products under the Synboard brand. The Company also offers gypsum, roofing and insulation products, including wall panels, ceilings, joint treatments and finishes; and siding, metal and concrete products, such as vinyl, composite and wood siding products, as well as exterior trim, other exterior, metal studs and cement products. In addition, it provides other construction products and services, such as cabinetry and hardware, as well as turnkey framing, hull 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 the floor and the decoration (Get a rating)

Floor & Decor LogoFloor & Decor Holdings, Inc. operates as a multi-channel specialty retailer and distributor of commercial flooring of hard surface flooring and related accessories. The company’s stores offer tile, wood, laminate, vinyl and natural stone products, as well as decorative and installation accessories. It serves professional installers, commercial businesses and DIY customers. As of December 30, 2021, the company operated 160 outlet 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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