Contrasting Floor & Decor (NYSE:FND) and Builders FirstSource (NASDAQ:BLDR)

Floor & Decor (NYSE:FNDGet Rating) and Builders FirstSource (NASDAQ:BLDRGet Rating) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Risk and Volatility

Floor & Decor has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Builders FirstSource has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.


This table compares Floor & Decor and Builders FirstSource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Floor & Decor 6.99% 19.35% 7.11%
Builders FirstSource 12.10% 59.80% 26.44%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Floor & Decor and Builders FirstSource, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Floor & Decor 1 9 8 0 2.39
Builders FirstSource 0 0 0 0 N/A

Floor & Decor presently has a consensus target price of $91.59, indicating a potential upside of 0.07%. Given Floor & Decor’s higher possible upside, research analysts plainly believe Floor & Decor is more favorable than Builders FirstSource.

Insider and Institutional Ownership

94.7% of Builders FirstSource shares are owned by institutional investors. 2.7% of Floor & Decor shares are owned by company insiders. Comparatively, 1.4% of Builders FirstSource shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Floor & Decor and Builders FirstSource’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Floor & Decor $4.26 billion 2.28 $298.20 million $2.77 33.04
Builders FirstSource $22.73 billion 0.49 $2.75 billion $16.65 4.81

Builders FirstSource has higher revenue and earnings than Floor & Decor. Builders FirstSource is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.


Builders FirstSource beats Floor & Decor on 8 of the 13 factors compared between the two stocks.

About Floor & Decor

(Get Rating)

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

About Builders FirstSource

(Get Rating)

Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components and construction services to professional homebuilders, subcontractors, remodelers and consumers. Its products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The company was founded by Kevin P. O’Meara, Donald F. McAleenan and John D. Roach in March 1998 and is headquartered in Dallas, TX.

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