Boise Cascade (NYSE:BCC – Get Free Report) and DXP Enterprises (NASDAQ:DXPE – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Institutional and Insider Ownership
96.2% of Boise Cascade shares are held by institutional investors. Comparatively, 74.8% of DXP Enterprises shares are held by institutional investors. 1.4% of Boise Cascade shares are held by company insiders. Comparatively, 22.0% of DXP Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Boise Cascade has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, DXP Enterprises has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Boise Cascade | 1.64% | 5.41% | 3.34% |
| DXP Enterprises | 4.35% | 18.51% | 5.70% |
Earnings and Valuation
This table compares Boise Cascade and DXP Enterprises”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boise Cascade | $6.40 billion | 0.42 | $132.84 million | $2.95 | 26.18 |
| DXP Enterprises | $2.02 billion | 1.48 | $88.68 million | $5.68 | 33.82 |
Boise Cascade has higher revenue and earnings than DXP Enterprises. Boise Cascade is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Boise Cascade and DXP Enterprises, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boise Cascade | 1 | 3 | 3 | 0 | 2.29 |
| DXP Enterprises | 0 | 2 | 2 | 0 | 2.50 |
Boise Cascade currently has a consensus target price of $93.60, indicating a potential upside of 21.20%. DXP Enterprises has a consensus target price of $187.00, indicating a potential downside of 2.65%. Given Boise Cascade’s higher probable upside, research analysts plainly believe Boise Cascade is more favorable than DXP Enterprises.
Summary
DXP Enterprises beats Boise Cascade on 8 of the 14 factors compared between the two stocks.
About Boise Cascade
Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through 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 shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.
About DXP Enterprises
DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.
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