Builders FirstSource (NYSE:BLDR – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Insider & Institutional Ownership
95.5% of Builders FirstSource shares are owned by institutional investors. Comparatively, 26.0% of Jewett-Cameron Trading shares are owned by institutional investors. 1.8% of Builders FirstSource shares are owned by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Builders FirstSource has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Builders FirstSource | 0 | 4 | 15 | 1 | 2.85 |
| Jewett-Cameron Trading | 0 | 0 | 0 | 0 | 0.00 |
Builders FirstSource currently has a consensus target price of $190.72, suggesting a potential upside of 41.59%. Given Builders FirstSource’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Builders FirstSource is more favorable than Jewett-Cameron Trading.
Earnings & Valuation
This table compares Builders FirstSource and Jewett-Cameron Trading”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Builders FirstSource | $16.40 billion | 0.93 | $1.54 billion | $9.06 | 14.87 |
| Jewett-Cameron Trading | $46.61 million | 0.33 | $720,000.00 | ($0.35) | -12.60 |
Builders FirstSource has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading 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 Builders FirstSource and Jewett-Cameron Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Builders FirstSource | 6.57% | 30.54% | 12.68% |
| Jewett-Cameron Trading | -2.66% | -5.00% | -4.44% |
Summary
Builders FirstSource beats Jewett-Cameron Trading on 15 of the 15 factors compared between the two stocks.
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.
About Jewett-Cameron Trading
Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.
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