Head to Head Comparison: Tecnoglass (NYSE:TGLS) and Builders FirstSource (NYSE:BLDR)

Tecnoglass (NYSE:TGLS) and Builders FirstSource (NYSE:BLDR) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Tecnoglass and Builders FirstSource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tecnoglass	$983.61 million	1.81	$159.57 million	$2.84	14.12
Builders FirstSource	$14.45 billion	0.50	$435.20 million	$0.91	74.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tecnoglass	12.35%	17.84%	10.14%
Builders FirstSource	0.71%	11.73%	4.32%

Institutional and Insider Ownership

37.3% of Tecnoglass shares are owned by institutional investors. Comparatively, 95.5% of Builders FirstSource shares are owned by institutional investors. 0.1% of Tecnoglass shares are owned by company insiders. Comparatively, 2.7% of Builders FirstSource shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Tecnoglass and Builders FirstSource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecnoglass	0	2	3	0	2.60
Builders FirstSource	3	13	9	0	2.24

Tecnoglass presently has a consensus target price of $63.33, suggesting a potential upside of 57.94%. Builders FirstSource has a consensus target price of $90.35, suggesting a potential upside of 33.38%. Given Tecnoglass’ stronger consensus rating and higher possible upside, analysts clearly believe Tecnoglass is more favorable than Builders FirstSource.

Volatility & Risk

Tecnoglass has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

About Builders FirstSource

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, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name. The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; turn-key framing, shell construction, design assistance, and professional installation services. In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.