Contrasting JELD-WEN (NYSE:JELD) & BlueLinx (NYSE:BXC)

JELD-WEN (NYSE:JELD) and BlueLinx (NYSE:BXC) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares JELD-WEN and BlueLinx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JELD-WEN	-9.49%	3.70%	0.88%
BlueLinx	1.31%	4.90%	1.98%

Insider & Institutional Ownership

95.0% of JELD-WEN shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 1.2% of JELD-WEN shares are held by company insiders. Comparatively, 3.8% of BlueLinx shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

JELD-WEN has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for JELD-WEN and BlueLinx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JELD-WEN	1	7	0	0	1.88
BlueLinx	0	0	4	0	3.00

JELD-WEN currently has a consensus price target of $7.34, suggesting a potential upside of 88.88%. BlueLinx has a consensus price target of $110.00, suggesting a potential upside of 48.03%. Given JELD-WEN’s higher possible upside, equities research analysts clearly believe JELD-WEN is more favorable than BlueLinx.

Earnings and Valuation

This table compares JELD-WEN and BlueLinx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JELD-WEN	$3.78 billion	0.09	-$189.02 million	($4.03)	-0.96
BlueLinx	$2.95 billion	0.20	$53.12 million	$4.48	16.59

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

Summary

BlueLinx beats JELD-WEN on 11 of the 14 factors compared between the two stocks.

About JELD-WEN

JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.

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.