Lowe’s Companies (NYSE:LOW – Get Rating) and Builders FirstSource (NASDAQ:BLDR – Get Rating) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This table compares Lowe’s Companies and Builders FirstSource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
75.5% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 99.4% of Builders FirstSource shares are owned by institutional investors. 0.2% of Lowe’s Companies shares are owned by company insiders. Comparatively, 1.3% of Builders FirstSource shares are owned by company 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.
Earnings and Valuation
This table compares Lowe’s Companies and Builders FirstSource’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lowe’s Companies||$96.25 billion||1.28||$8.44 billion||$12.27||15.18|
|Builders FirstSource||$19.89 billion||0.56||$1.73 billion||$11.24||5.56|
Lowe’s Companies has higher revenue and earnings than Builders FirstSource. Builders FirstSource is trading at a lower price-to-earnings ratio than Lowe’s Companies, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Lowe’s Companies and Builders FirstSource, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lowe’s Companies currently has a consensus target price of $246.00, indicating a potential upside of 32.08%. Given Lowe’s Companies’ higher possible upside, analysts plainly believe Lowe’s Companies is more favorable than Builders FirstSource.
Volatility and Risk
Lowe’s Companies has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.
Lowe’s Companies beats Builders FirstSource on 7 of the 13 factors compared between the two stocks.
About Lowe’s Companies (Get Rating)
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, lighting, and electrical. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private brand products to homeowners, renters, and professional customers. As of January 28, 2022, it operated 1,971 home improvement and hardware stores. The company also sells its products through websites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
About Builders FirstSource (Get Rating)
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, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trims and custom products under the Synboard brand name. The company also offers gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes; and siding, metal, and concrete products, such as vinyl, composite, and wood siding products, as well as exterior trims, other exteriors, metal studs, and cement products. In addition, it provides other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.
Receive News & Ratings for Lowe's Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lowe's Companies and related companies with MarketBeat.com's FREE daily email newsletter.