Contrasting Builders FirstSource (NYSE:BLDR) and Jewett-Cameron Trading (NASDAQ:JCTC)

Builders FirstSource (NYSE:BLDR) and Jewett-Cameron Trading (NASDAQ:JCTC) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Builders FirstSource and Jewett-Cameron Trading, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Builders FirstSource	0	4	15	1	2.85
Jewett-Cameron Trading	0	0	0	0	0.00

Builders FirstSource currently has a consensus price target of $190.72, indicating a potential upside of 46.94%. Given Builders FirstSource’s stronger consensus rating and higher possible upside, equities analysts clearly believe Builders FirstSource is more favorable than Jewett-Cameron Trading.

Valuation and Earnings

This table compares Builders FirstSource and Jewett-Cameron Trading”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Builders FirstSource	$16.40 billion	0.90	$1.54 billion	$9.06	14.33
Jewett-Cameron Trading	$46.61 million	0.33	$720,000.00	($0.35)	-12.57

Builders FirstSource has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Builders FirstSource, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Builders FirstSource has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Builders FirstSource shares are held by institutional investors. Comparatively, 26.0% of Jewett-Cameron Trading shares are held by institutional investors. 1.8% of Builders FirstSource shares are held by insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Builders FirstSource and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Builders FirstSource	6.57%	30.54%	12.68%
Jewett-Cameron Trading	-2.66%	-5.00%	-4.44%

Summary

Builders FirstSource beats Jewett-Cameron Trading on 15 of the 15 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 Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.