Critical Comparison: LL Flooring (NYSE: LL) vs Builders FirstSource (NASDAQ: BLDR)

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LL Flooring (NYSE: LL – Get Rating) and Builders FirstSource (NASDAQ: BLDR – Get Rating) are both retail/wholesale companies, but which is the better stock? We’ll compare the two companies based on earnings strength, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

This table compares the net margins, return on equity and return on assets of LL Flooring and Builders FirstSource.

Net margins Return on equity return on assets
LL floor 3.06% 13.10% 5.66%
FirstSource Builders 10.24% 47.82% 22.66%

Institutional and Insider Ownership

86.3% of LL Flooring shares are held by institutional investors. By comparison, 99.4% of Builders FirstSource’s stock is held by institutional investors. 2.6% of LL Flooring shares are held by insiders of the company. By comparison, 1.3% of Builders FirstSource stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of LL Flooring and Builders FirstSource.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
LL floor $1.15 billion 0.29 $41.70 million $1.20 9.28
FirstSource Builders $19.89 billion 0.59 $1.73 billion $11.24 5.94

Builders FirstSource has higher revenue and profit than LL Flooring. Builders FirstSource trades at a lower price-to-earnings ratio than LL Flooring, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommendations for LL Flooring and Builders FirstSource, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
LL floor 0 1 0 0 2.00
FirstSource Builders 0 0 0 0 N / A

LL Flooring currently has a consensus target price of $22.00, suggesting a potential upside of 97.66%. Given the higher possible upside of LL Flooring, stock analysts clearly believe that LL Flooring is more favorable than Builders FirstSource.

Volatility and risk

LL Flooring has a beta of 2.18, suggesting its stock price is 118% more volatile than the S&P 500. By comparison, Builders FirstSource has a beta of 2.13, suggesting its stock price is 113% more volatile than the S&P 500.

Summary

Builders FirstSource beats LL Flooring on 8 out of 12 factors compared between the two stocks.

About LL Flooring (Get a rating)

LL Flooring Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard surface flooring and hard surface flooring upgrades and accessories. The company offers hardwood species; waterproof vinyl planks, engineered hardwood, laminate, bamboo, porcelain tile and cork products; and flooring upgrades and accessories, including moldings, underlays, adhesives and tools under the Bellawood and Coreluxe brands. It also offers home delivery and installation services. The company mainly serves owners or professionals on behalf of owners. As of April 4, 2022, it operated 431 stores in the United States. The company also offers its products through its customer relations center, its digital platform and its catalogs. The company was formerly known as Lumber Liquidators Holdings, Inc. and changed its name to LL Flooring Holdings, Inc. in January 2022. LL Flooring Holdings, Inc. was founded in 1994 and is headquartered in Richmond, in Virginia.

About Builders First Source (Get a rating)

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, fabricated components and construction services to professional home builders, contractors, remodelers and consumers in the United States. It offers lumber and lumber sheet products including dimensional lumber, plywood and oriented strand board products that are used in on-site home framing; manufactured products, such as wooden floors and roof trusses, steel roof trusses, wall panels, stairs and engineered wood products; and windows, and interior and exterior door units, as well as interior and exterior trim and custom products under the Synboard brand. The Company also offers gypsum, roofing and insulation products, including wall panels, ceilings, joint treatments and finishes; and siding, metal and concrete products, such as vinyl, composite and wood siding products, as well as exterior trim, other exterior, metal studs and cement products. In addition, it provides other construction products and services, such as cabinetry and hardware, as well as turnkey framing, hull construction, design assistance and professional installation services. 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.



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