Reviewing BlueLinx (NYSE:BXC) and GATX (NYSE:GATX)

GATX (NYSE:GATX) and BlueLinx (NYSE:BXC) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares GATX and BlueLinx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.74 billion	3.61	$333.30 million	$10.10	17.64
BlueLinx	$2.95 billion	0.22	$220,000.00	($0.25)	-327.16

GATX has higher earnings, but lower revenue than BlueLinx. BlueLinx is trading at a lower price-to-earnings ratio than GATX, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GATX has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares GATX and BlueLinx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GATX	17.94%	10.43%	2.12%
BlueLinx	-0.06%	0.13%	0.05%

Insider and Institutional Ownership

93.1% of GATX shares are owned by institutional investors. Comparatively, 90.8% of BlueLinx shares are owned by institutional investors. 1.9% of GATX shares are owned by insiders. Comparatively, 3.6% of BlueLinx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for GATX and BlueLinx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	0	4	0	3.00
BlueLinx	1	1	1	0	2.00

GATX currently has a consensus price target of $219.00, suggesting a potential upside of 22.94%. BlueLinx has a consensus price target of $83.50, suggesting a potential upside of 2.09%. Given GATX’s stronger consensus rating and higher probable upside, analysts clearly believe GATX is more favorable than BlueLinx.

Summary

GATX beats BlueLinx on 11 of the 14 factors compared between the two stocks.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.