Boise Cascade (BCC) and Its Rivals Critical Analysis

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

Dividends

Boise Cascade pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Boise Cascade pays out 25.0% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.9% and pay out 105.9% of their earnings in the form of a dividend. Boise Cascade has increased its dividend for 6 consecutive years.

Institutional and Insider Ownership

96.2% of Boise Cascade shares are owned by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are owned by institutional investors. 1.1% of Boise Cascade shares are owned by company insiders. Comparatively, 1.6% of shares of all “BLDG PRD – WOOD” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Boise Cascade and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Boise Cascade	$6.40 billion	$132.84 million	21.22
Boise Cascade Competitors	$4.73 billion	$261.89 million	22.85

Boise Cascade has higher revenue, but lower earnings than its rivals. Boise Cascade is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Boise Cascade and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boise Cascade	1	1	5	0	2.57
Boise Cascade Competitors	300	1299	1199	49	2.35

Boise Cascade currently has a consensus target price of $105.67, suggesting a potential upside of 41.45%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 22.64%. Given Boise Cascade’s stronger consensus rating and higher probable upside, research analysts clearly believe Boise Cascade is more favorable than its rivals.

Profitability

This table compares Boise Cascade and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boise Cascade	2.07%	6.54%	4.09%
Boise Cascade Competitors	10.27%	4.59%	3.76%

Risk & Volatility

Boise Cascade has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Boise Cascade’s rivals have a beta of 1.40, meaning that their average share price is 40% more volatile than the S&P 500.

Summary

Boise Cascade beats its rivals on 8 of the 15 factors compared.

Boise Cascade Company Profile

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.