Builders FirstSource (NYSE:BLDR) & Travis Perkins (OTCMKTS:TPRKY) Critical Analysis

Builders FirstSource (NYSE:BLDR) and Travis Perkins (OTCMKTS:TPRKY) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

95.5% of Builders FirstSource shares are owned by institutional investors. 1.8% of Builders FirstSource shares are owned 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 & Earnings

This table compares Builders FirstSource and Travis Perkins”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Builders FirstSource	$17.10 billion	1.24	$1.54 billion	$10.24	18.03
Travis Perkins	$6.05 billion	N/A	$47.39 million	N/A	N/A

Builders FirstSource has higher revenue and earnings than Travis Perkins.

Analyst Recommendations

This is a summary of recent ratings and price targets for Builders FirstSource and Travis Perkins, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Builders FirstSource	0	4	14	1	2.84
Travis Perkins	0	0	0	0	0.00

Builders FirstSource presently has a consensus target price of $206.47, suggesting a potential upside of 11.85%. Given Builders FirstSource’s stronger consensus rating and higher probable upside, research analysts plainly believe Builders FirstSource is more favorable than Travis Perkins.

Profitability

This table compares Builders FirstSource and Travis Perkins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Builders FirstSource	7.40%	33.55%	14.29%
Travis Perkins	N/A	N/A	N/A

Risk & Volatility

Builders FirstSource has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Travis Perkins has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Summary

Builders FirstSource beats Travis Perkins on 12 of the 12 factors compared between the two stocks.

About Builders FirstSource

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, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name. The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; turn-key framing, shell construction, design assistance, and professional installation services. In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.