Critical Comparison: BlueLinx (NYSE:BXC) versus Boise Cascade (NYSE:BCC)

Boise Cascade (NYSE:BCC) and BlueLinx (NYSE:BXC) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Boise Cascade and BlueLinx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boise Cascade	$6.46 billion	0.42	$132.84 million	$2.95	26.66
BlueLinx	$2.95 billion	0.21	$220,000.00	($0.25)	-317.76

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

Insider & Institutional Ownership

96.2% of Boise Cascade shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 1.4% of Boise Cascade shares are held by insiders. Comparatively, 3.6% of BlueLinx shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boise Cascade	1.64%	5.41%	3.34%
BlueLinx	-0.06%	0.13%	0.05%

Volatility and Risk

Boise Cascade has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Boise Cascade and BlueLinx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boise Cascade	1	4	3	0	2.25
BlueLinx	1	3	1	0	2.00

Boise Cascade presently has a consensus price target of $92.00, suggesting a potential upside of 16.96%. BlueLinx has a consensus price target of $83.50, suggesting a potential upside of 5.11%. Given Boise Cascade’s stronger consensus rating and higher possible upside, equities analysts plainly believe Boise Cascade is more favorable than BlueLinx.

Summary

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

About Boise Cascade

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.

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.