BlueLinx (BXC) and Its Competitors Critical Comparison

BlueLinx (NYSE:BXC) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its rivals? We will compare BlueLinx to related companies based on the strength of its profitability, dividends, risk, valuation, earnings, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

90.8% of BlueLinx shares are owned by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 3.6% of BlueLinx shares are owned by insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
BlueLinx	$2.95 billion	$220,000.00	-120.93
BlueLinx Competitors	$6.62 billion	$363.16 million	34.03

BlueLinx’s rivals have higher revenue and earnings than BlueLinx. BlueLinx 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.

Volatility & Risk

BlueLinx has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, BlueLinx’s rivals have a beta of 1.32, meaning that their average share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for BlueLinx and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	1	4	1	0	2.00
BlueLinx Competitors	1471	4926	6747	242	2.43

BlueLinx currently has a consensus target price of $83.50, suggesting a potential upside of 32.79%. As a group, “Trading Companies & Distributors” companies have a potential upside of 8.42%. Given BlueLinx’s higher possible upside, analysts plainly believe BlueLinx is more favorable than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlueLinx	-0.14%	0.42%	0.16%
BlueLinx Competitors	1.10%	-33.74%	3.54%

Summary

BlueLinx rivals beat BlueLinx on 9 of the 13 factors compared.

About BlueLinx

BlueLinx Holdings Inc. is a U.S. wholesale distributor of building products, serving dealers, home improvement retailers, manufactured housing producers, and other customers in the construction and building materials industries. The company distributes structural products such as lumber, plywood, oriented strand board, and engineered wood, as well as specialty products including siding, trim, insulation, roofing materials, and composite products. It also provides logistics and other distribution services to help customers source and transport building materials.