Analyzing Latitude 360 (LATX) & Builders FirstSource (BLDR)

Latitude 360 (OTCMKTS:LATX) and Builders FirstSource (NASDAQ:BLDR) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Latitude 360 and Builders FirstSource, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Latitude 360 0 0 0 0 N/A
Builders FirstSource 1 6 3 0 2.20

Builders FirstSource has a consensus price target of $16.50, indicating a potential upside of 32.85%. Given Builders FirstSource’s higher possible upside, analysts clearly believe Builders FirstSource is more favorable than Latitude 360.

Profitability

This table compares Latitude 360 and Builders FirstSource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Latitude 360 N/A N/A N/A
Builders FirstSource 1.44% 48.32% 6.80%

Earnings and Valuation

This table compares Latitude 360 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
Latitude 360 N/A N/A N/A N/A N/A
Builders FirstSource $7.03 billion 0.20 $38.78 million $1.27 9.78

Builders FirstSource has higher revenue and earnings than Latitude 360.

Institutional & Insider Ownership

93.6% of Builders FirstSource shares are owned by institutional investors. 24.5% of Latitude 360 shares are owned by company insiders. Comparatively, 2.3% of Builders FirstSource shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Builders FirstSource beats Latitude 360 on 7 of the 8 factors compared between the two stocks.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

About Builders FirstSource

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. The company operates through four segments: Northeast, Southeast, South, and West. Its products include lumber and lumber sheet goods comprising dimensional lumber, plywood, and OSB products that are used in on-site house framing; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand. The company's manufactured products consist of wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood; gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes, as well as vinyl, composite, and wood sidings; and exterior trims, other exteriors, metal studs, and cement products. In addition, it offers other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. Further, the company supplies professional grade building products, such as lumber and lumber sheet goods, and various windows, doors, and millwork lines. 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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