Builders FirstSource (BLDR) versus Wisdom Homes of America (WOFA) Critical Survey

Builders FirstSource (NASDAQ:BLDR) and Wisdom Homes of America (OTCMKTS:WOFA) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

91.6% of Builders FirstSource shares are owned by institutional investors. 2.3% of Builders FirstSource shares are owned by insiders. Comparatively, 33.3% of Wisdom Homes of America shares are owned 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.

Valuation and Earnings

This table compares Builders FirstSource and Wisdom Homes of America’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Builders FirstSource $7.03 billion 0.24 $38.78 million $1.27 11.48
Wisdom Homes of America N/A N/A N/A N/A N/A

Builders FirstSource has higher revenue and earnings than Wisdom Homes of America.

Profitability

This table compares Builders FirstSource and Wisdom Homes of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Builders FirstSource 1.44% 51.99% 6.82%
Wisdom Homes of America N/A N/A N/A

Volatility & Risk

Builders FirstSource has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Wisdom Homes of America has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Builders FirstSource and Wisdom Homes of America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Builders FirstSource 0 4 8 0 2.67
Wisdom Homes of America 0 0 0 0 N/A

Builders FirstSource presently has a consensus target price of $21.42, indicating a potential upside of 46.89%. Given Builders FirstSource’s higher possible upside, equities analysts clearly believe Builders FirstSource is more favorable than Wisdom Homes of America.

Summary

Builders FirstSource beats Wisdom Homes of America on 7 of the 9 factors compared between the two stocks.

Builders FirstSource Company Profile

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. The company operates through four segments: Northeast, Southeast, South, and West. Its products include lumber and lumber sheet goods comprising dimensional lumber, plywood, and OSB products that are used in on-site house framing; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand. The company's manufactured products consist of wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood; gypsum, roofing, and insulation products, including wallboards, ceilings, joint treatments, and finishes, as well as vinyl, composite, and wood sidings; and exterior trims, other exteriors, metal studs, and cement products. In addition, it offers other building products and services, such as cabinets and hardware, as well as turn-key framing, shell construction, design assistance, and professional installation services. Further, the company supplies professional grade building products, such as lumber and lumber sheet goods, and various windows, doors, and millwork lines. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

Wisdom Homes of America Company Profile

Wisdom Homes of America, Inc. engages in opening and operating manufactured home retail centers for homebuyers in Texas. The company was formerly known as SearchCore, Inc. and changed its name to Wisdom Homes of America, Inc. in March 2015. Wisdom Homes of America, Inc. was founded in 2003 and is headquartered in Tyler, Texas.

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