Critical Review: Nature Wood Group (NASDAQ:NWGL) vs. BlueLinx (NYSE:BXC)

Nature Wood Group (NASDAQ:NWGL) and BlueLinx (NYSE:BXC) are both small-cap construction companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Nature Wood Group has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Nature Wood Group and BlueLinx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nature Wood Group	1	0	0	0	1.00
BlueLinx	1	1	2	0	2.25

BlueLinx has a consensus target price of $88.67, suggesting a potential upside of 11.80%. Given BlueLinx’s stronger consensus rating and higher possible upside, analysts clearly believe BlueLinx is more favorable than Nature Wood Group.

Earnings and Valuation

This table compares Nature Wood Group and BlueLinx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nature Wood Group	$21.54 million	0.96	-$8.73 million	N/A	N/A
BlueLinx	$2.95 billion	0.21	$53.12 million	$1.70	46.65

BlueLinx has higher revenue and earnings than Nature Wood Group.

Institutional and Insider Ownership

90.8% of BlueLinx shares are owned by institutional investors. 3.8% of BlueLinx shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Nature Wood Group and BlueLinx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nature Wood Group	N/A	N/A	N/A
BlueLinx	0.48%	1.41%	0.56%

Summary

BlueLinx beats Nature Wood Group on 10 of the 12 factors compared between the two stocks.

About Nature Wood Group

Nature Wood Group Limited, an integrated forestry company, engages in management and harvesting, and down-stream wood-processing and distribution activities. It operates in two divisions, Direct Purchase and Original Design Manufacturer Services; and Manufacturing segments. The company offers a range of products, including logs, decking and flooring products, sawn timber, recycled and synthesized charcoal, machine-made charcoal, and essential oils. It provides IT and business consultancy services. The company serves importers, retailers, and processors through its sales network in Europe, South Asia, South America, North America, and China. The company was formerly known as China Nature Wood Industry Group Limited and changed its name to Nature Wood Group Limited in September 2022. The company was incorporated in 2011 and is headquartered in Macau. Nature Wood Group Limited operates as a subsidiary of Easy Bliss Limited.

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.