Boise Cascade (NYSE: BCC) and Beacon Roofing Supply (NASDAQ:BECN) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility & Risk
Boise Cascade has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Beacon Roofing Supply has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
This table compares Boise Cascade and Beacon Roofing Supply’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beacon Roofing Supply||3.29%||9.60%||4.21%|
Institutional & Insider Ownership
94.8% of Boise Cascade shares are held by institutional investors. 1.0% of Boise Cascade shares are held by company insiders. Comparatively, 0.8% of Beacon Roofing Supply shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Boise Cascade and Beacon Roofing Supply’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boise Cascade||$4.43 billion||0.35||$82.95 million||$1.91||20.84|
|Beacon Roofing Supply||$4.38 billion||0.83||$100.86 million||$2.18||24.49|
Beacon Roofing Supply has lower revenue, but higher earnings than Boise Cascade. Boise Cascade is trading at a lower price-to-earnings ratio than Beacon Roofing Supply, indicating that it is currently the more affordable of the two stocks.
Boise Cascade pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Beacon Roofing Supply does not pay a dividend. Boise Cascade pays out 14.7% of its earnings in the form of a dividend.
This is a summary of current ratings for Boise Cascade and Beacon Roofing Supply, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beacon Roofing Supply||0||3||7||0||2.70|
Boise Cascade currently has a consensus target price of $40.25, suggesting a potential upside of 1.13%. Beacon Roofing Supply has a consensus target price of $59.50, suggesting a potential upside of 11.44%. Given Beacon Roofing Supply’s stronger consensus rating and higher probable upside, analysts plainly believe Beacon Roofing Supply is more favorable than Boise Cascade.
Beacon Roofing Supply beats Boise Cascade on 9 of the 16 factors compared between the two stocks.
Boise Cascade Company Profile
Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada. It operates in 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 lumber, studs, and particleboards. This segment's products are used in new residential construction, residential repair-and-remodeling projects, light commercial construction, and industrial applications. It sells its products to wholesalers, home improvement centers, retail lumberyards, and industrial converters. The Building Materials Distribution segment distributes a line of building materials, including engineered wood products, oriented strand boards, plywood, and lumber; and general line items, such as siding, metal products, insulation, roofing, and composite decking. Its products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes; the repair and remodeling of existing housing; the construction of light industrial and commercial buildings; and other industrial applications. This segment sells its products to retail lumberyards, home improvement centers, and specialty distributors. The company was founded in 2004 and is headquartered in Boise, Idaho.
Beacon Roofing Supply Company Profile
Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and commercial roofing materials, and other complementary building materials to contractors, home builders, retailers, and building materials suppliers. The company's residential roofing products include asphalt shingles, synthetic slates and tiles, clay and concrete tiles, slates, nail base insulations, metal roofing, felts, synthetic underlayment, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, and other accessories. Its non-residential roofing products comprise single-ply roofing, asphalt, metal, modified bitumen, and build-up roofing products; cements and coatings; flat stock and tapered insulations; commercial fasteners; metal edges and flashings; smoke/roof hatches; roofing tools; sheet metal products, including copper, aluminum, and steel; and PVC, thermoplastic olefin, and ethylene propylene diene monomer membrane products. The company also provides complementary building products, such as vinyl, wood, and fiber cement sidings; and stone veneers, windows, doors, skylights, and gutters and downspouts, as well as decking and railing, sealants, air barriers, water proofing, building insulation, concrete restoration systems, and millwork products. In addition, it offers value-added services, including advice and assistance on product identification, specification, and technical support; job site delivery, rooftop loading, and logistical services; tapered insulation design and related layout services; metal fabrication and related metal roofing design and layout services; trade credit; and marketing support for contractors. As of November 20, 2017, the company operated through a network of 383 branches in 48 states of the United States and 6 provinces in Canada. Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia.
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