BlueLinx (NYSE:BXC) vs. GATX (NYSE:GATX) Head-To-Head Analysis

BlueLinx (NYSE:BXC) and GATX (NYSE:GATX) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 93.1% of GATX shares are held by institutional investors. 3.6% of BlueLinx shares are held by company insiders. Comparatively, 1.9% of GATX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares BlueLinx and GATX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlueLinx	$2.95 billion	0.21	$220,000.00	($0.25)	-317.76
GATX	$1.74 billion	3.61	$333.30 million	$10.10	17.64

GATX has lower revenue, but higher earnings than BlueLinx. BlueLinx is trading at a lower price-to-earnings ratio than GATX, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BlueLinx has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, GATX has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares BlueLinx and GATX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlueLinx	-0.06%	0.13%	0.05%
GATX	17.94%	10.43%	2.12%

Analyst Recommendations

This is a breakdown of current recommendations for BlueLinx and GATX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	1	1	1	0	2.00
GATX	0	0	4	0	3.00

BlueLinx currently has a consensus target price of $83.50, indicating a potential upside of 5.11%. GATX has a consensus target price of $219.00, indicating a potential upside of 22.94%. Given GATX’s stronger consensus rating and higher possible upside, analysts plainly believe GATX is more favorable than BlueLinx.

Summary

GATX beats BlueLinx on 11 of the 14 factors compared between the two stocks.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.