Contrasting Boise Cascade (NYSE:BCC) & BlueLinx (NYSE:BXC)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlueLinx	$2.95 billion	0.20	$220,000.00	($0.25)	-298.13
Boise Cascade	$6.40 billion	0.42	$132.84 million	$2.95	26.47

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 and Institutional Ownership

90.8% of BlueLinx shares are owned by institutional investors. Comparatively, 96.2% of Boise Cascade shares are owned by institutional investors. 3.6% of BlueLinx shares are owned by insiders. Comparatively, 1.4% of Boise Cascade shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlueLinx	-0.14%	0.42%	0.16%
Boise Cascade	1.83%	6.18%	3.78%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	1	4	1	0	2.00
Boise Cascade	2	4	2	0	2.00

BlueLinx presently has a consensus target price of $83.50, suggesting a potential upside of 12.03%. Boise Cascade has a consensus target price of $88.17, suggesting a potential upside of 12.93%. Given Boise Cascade’s higher possible upside, analysts clearly believe Boise Cascade is more favorable than BlueLinx.

Risk and Volatility

BlueLinx has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Boise Cascade has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Summary

Boise Cascade beats BlueLinx on 11 of the 13 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 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.