Contrasting BlueLinx (BXC) and The Competition

BlueLinx (NYSE:BXC) is one of 15 publicly-traded companies in the “BLDG PRD – WOOD” industry, but how does it compare to its peers? We will compare BlueLinx to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares BlueLinx and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BlueLinx	$2.95 billion	$53.12 million	16.59
BlueLinx Competitors	$4.92 billion	$298.49 million	-11.19

BlueLinx’s peers have higher revenue and earnings than BlueLinx. BlueLinx is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 3.8% of BlueLinx shares are held by insiders. Comparatively, 4.4% of shares of all “BLDG PRD – WOOD” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BlueLinx and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	0	4	0	3.00
BlueLinx Competitors	187	1156	1093	47	2.40

BlueLinx currently has a consensus target price of $110.00, suggesting a potential upside of 48.03%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 24.43%. Given BlueLinx’s stronger consensus rating and higher probable upside, research analysts clearly believe BlueLinx is more favorable than its peers.

Profitability

This table compares BlueLinx and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlueLinx	1.31%	4.90%	1.98%
BlueLinx Competitors	7.65%	10.27%	6.04%

Risk & Volatility

BlueLinx has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, BlueLinx’s peers have a beta of 1.49, indicating that their average share price is 49% more volatile than the S&P 500.

Summary

BlueLinx peers beat BlueLinx on 7 of the 13 factors compared.

BlueLinx Company Profile

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.