Jewett-Cameron Trading (NASDAQ:JCTC) vs. Builders FirstSource (NYSE:BLDR) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current ratings and target prices 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 presently has a consensus target price of $190.72, indicating a potential upside of 41.44%. Given Builders FirstSource’s stronger consensus rating and higher possible upside, analysts plainly believe Builders FirstSource is more favorable than Jewett-Cameron Trading.

Risk and Volatility

Builders FirstSource has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Builders FirstSource	$16.40 billion	0.93	$1.54 billion	$9.06	14.88
Jewett-Cameron Trading	$46.61 million	0.34	$720,000.00	($0.35)	-12.83

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.

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%

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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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.