BMC Stock Holdings (BMCH) & Universal Forest Products (UFPI) Head-To-Head Comparison
BMC Stock Holdings (NASDAQ: BMCH) and Universal Forest Products (NASDAQ:UFPI) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
78.1% of Universal Forest Products shares are held by institutional investors. 3.7% of BMC Stock Holdings shares are held by company insiders. Comparatively, 3.4% of Universal Forest Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares BMC Stock Holdings and Universal Forest Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BMC Stock Holdings||1.28%||9.20%||4.36%|
|Universal Forest Products||2.85%||12.05%||7.61%|
Volatility and Risk
BMC Stock Holdings has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Universal Forest Products has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
Universal Forest Products pays an annual dividend of $0.90 per share and has a dividend yield of 0.8%. BMC Stock Holdings does not pay a dividend. Universal Forest Products pays out 16.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for BMC Stock Holdings and Universal Forest Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BMC Stock Holdings||0||0||5||0||3.00|
|Universal Forest Products||0||1||1||0||2.50|
BMC Stock Holdings currently has a consensus price target of $23.40, suggesting a potential upside of 8.84%. Universal Forest Products has a consensus price target of $110.00, suggesting a potential downside of 2.27%. Given BMC Stock Holdings’ stronger consensus rating and higher possible upside, equities research analysts plainly believe BMC Stock Holdings is more favorable than Universal Forest Products.
Earnings and Valuation
This table compares BMC Stock Holdings and Universal Forest Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BMC Stock Holdings||$3.21 billion||0.45||$186.26 million||$0.62||34.68|
|Universal Forest Products||$3.83 billion||0.60||$227.60 million||$5.33||21.12|
Universal Forest Products has higher revenue and earnings than BMC Stock Holdings. Universal Forest Products is trading at a lower price-to-earnings ratio than BMC Stock Holdings, indicating that it is currently the more affordable of the two stocks.
Universal Forest Products beats BMC Stock Holdings on 10 of the 16 factors compared between the two stocks.
About BMC Stock Holdings
BMC Stock Holdings, Inc. is a provider of building products and services in the United States residential construction market. The Company’s segments include Mid-Atlantic, Southeast, Texas, Intermountain, Western and Mountain West divisions. Its product offerings include lumber and lumber sheet goods and an array of products, including millwork, doors, windows, structural components, floor and roof trusses and wall panels. Its whole-house framing solution is Ready-Frame. It also offers its customers services, such as design, product specification, installation and installation management. It manufactures floor trusses, roof trusses, wall panels, stairs, specialty millwork, windows and pre-hung doors. It also provides a range of installation services and special order products. The Company groups its building products and services into four product categories: structural components; lumber & lumber sheet goods; millwork, doors & windows, and other building products & services.
About Universal Forest Products
Universal Forest Products, Inc. is a holding company. The Company, through its subsidiaries, supplies wood, wood composite and other products to three primary markets, such as retail, construction and industrial. Its segments include North, South, West, Alternative Materials, International, idX Holdings, Inc. (idX) and Corporate divisions. idX is a designer, manufacturer and installer of in-store environments. It designs, manufactures and markets wood and wood-alternative products for national home centers and other retailers; structural lumber and other products for the manufactured housing industry; engineered wood components for residential and commercial construction; specialty wood packaging, components and packing materials for various industries, and customized interior fixtures used in a range of retail stores, commercial and other structures. Its customers comprising retail market are national home center retailers and retail-oriented regional lumberyards, among others.
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