TopBuild Corp. (BLD)’s Financial Results Comparing With Builders FirstSource Inc. (NASDAQ:BLDR)

TopBuild Corp. (NYSE:BLD) and Builders FirstSource Inc. (NASDAQ:BLDR) are two firms in the General Building Materials that compete against each other. Below is a comparison of their institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TopBuild Corp. 2.38B 0.93 134.75M 3.79 16.21
Builders FirstSource Inc. 7.72B 0.20 205.19M 1.19 12.21

Table 1 showcases the gross revenue, earnings per share (EPS) and valuation of TopBuild Corp. and Builders FirstSource Inc. Builders FirstSource Inc. seems to has lower earnings, but higher revenue compared to TopBuild Corp. Company that currently has a higher P/E ratio means that it is the more expensive of the two businesses. TopBuild Corp. is trading at a higher P/E ratio than Builders FirstSource Inc., indicating that it is currently more expensive of the two stocks.

Profitability

Table 2 hightlights the net margins, return on assets and return on equity of the two companies.

Net Margins Return on Equity Return on Assets
TopBuild Corp. 5.66% 12.7% 5.9%
Builders FirstSource Inc. 2.66% 17.3% 2.4%

Volatility & Risk

A 1.06 beta indicates that TopBuild Corp. is 6.00% more volatile compared to S&P 500. Builders FirstSource Inc.’s 123.00% more volatile than S&P 500 which is a result of the 2.23 beta.

Liquidity

TopBuild Corp.’s Current Ratio is 1.6 while its Quick Ratio is 1.2. On the competitive side is, Builders FirstSource Inc. which has a 2.1 Current Ratio and a 1.2 Quick Ratio. Builders FirstSource Inc. is better positioned to pay off short and long-term obligations compared to TopBuild Corp.

Analyst Ratings

TopBuild Corp. and Builders FirstSource Inc. Ratings and Recommendations are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
TopBuild Corp. 0 2 2 2.50
Builders FirstSource Inc. 1 6 2 2.22

TopBuild Corp.’s upside potential currently stands at 7.38% and an $68.5 consensus price target. Competitively Builders FirstSource Inc. has an average price target of $15.43, with potential upside of 14.21%. The results provided earlier shows that Builders FirstSource Inc. appears more favorable than TopBuild Corp., based on analyst view.

Institutional & Insider Ownership

Roughly 97.3% of TopBuild Corp. shares are owned by institutional investors while 94.5% of Builders FirstSource Inc. are owned by institutional investors. Insiders owned 0.5% of TopBuild Corp. shares. Insiders Competitively, owned 1.9% of Builders FirstSource Inc. shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
TopBuild Corp. 4.6% 16.27% 16.4% -5.68% -9.71% 36.44%
Builders FirstSource Inc. 4.15% 10.21% 8.33% -9.95% -31.24% 33.55%

For the past year TopBuild Corp. has stronger performance than Builders FirstSource Inc.

Summary

TopBuild Corp. beats Builders FirstSource Inc. on 10 of the 15 factors.

TopBuild Corp. engages in the installation, distribution, and sale of insulation and other building products to the United States construction industry. The company operates in two segments, Installation and Distribution. It offers rain gutters, garage doors, fireplaces, fireproofing and firestopping products, shower enclosures, closet shelves, accessories, and other building products; and residential insulation services. The company also provides various services and tools that are designed to assist builders in applying the principles of building science to new home construction, which includes pre-construction plan reviews, various inspection services, and diagnostic testing; and home energy rating services. It serves single-family homebuilders, local/single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. TopBuild Corp. has approximately 170 installation branches located in 44 states, and 70 distribution centers in 33 states. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional contractors, sub-contractors, and consumers in the United States. Its products include lumber and lumber sheet goods comprising dimensional lumber, plywood, and OSB products that are used in on-site house framing; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand. The companyÂ’s manufactured products consist of wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood; gypsum, roofing and insulation products, including wallboards, ceilings, joint treatment, and finishes, as well as vinyl, composite, and wood sidings; and exterior trims, other exteriors, metal studs, and cement. In addition, it offers other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. Further, the company supplies professional grade building products, such as lumber and lumber sheet goods, and various windows, doors, and millwork lines. 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.