Builders FirstSource, Inc. (BLDR) vs Trex Company, Inc. (TREX)

Builders FirstSource, Inc. and Trex Company, Inc. are both Building Products & Equipment companies. Builders FirstSource, Inc. is the larger, with a market value of $6.3B against $4.4B — 1.4× the size. Trex Company, Inc. trades at the lower P/E: 26.7× against 64.3×. Trex Company, Inc. grew revenue faster over the last twelve months: 6.97% against −9.38%. Trex Company, Inc. has the higher net margin (14.7% vs 0.71%) and the higher return on invested capital (12.1% vs 3.19%). Across the 22 metrics below, Trex Company, Inc. leads on 13 and Builders FirstSource, Inc. on 9.

Valuation

Metric BLDR TREX Building Products & Equipment median
P/E 64.32 26.66 24.54
P/S 0.44 3.79 2.00
P/B 1.59 4.54 3.02
Price to free cash flow 9.81 23.06 18.49
EV/EBITDA 10.54 15.38 12.63
EV/Sales 0.75 4.00 2.14
Earnings yield 1.55% 3.75% 2.74%
Free cash flow yield 10.20% 4.34% 3.58%

Profitability

Metric BLDR TREX Building Products & Equipment median
Gross margin 29.19% 38.20% 29.19%
Operating margin 3.01% 20.17% 6.84%
Net margin 0.71% 14.68% 4.05%
Free cash flow margin 4.49% 16.45% 8.72%
Return on equity 2.51% 17.74% 9.28%
Return on assets 0.90% 11.21% 2.88%
Return on invested capital 3.19% 12.12% 5.16%

Growth

Metric BLDR TREX Building Products & Equipment median
Revenue growth (TTM) (9.38%) 6.97% 3.11%
EPS growth (last fiscal year) (57.06%) (15.31%) —
Revenue growth, 5-year CAGR 12.16% 5.92% 5.37%
Net income growth, 5-year CAGR 6.78% 1.63% 0.00%

Health

Metric BLDR TREX Building Products & Equipment median
Debt to equity 1.15 0.25 0.43
Current ratio 1.79 1.06 1.82
Net debt to EBITDA 3.09 0.40 0.98

Dividend

Metric BLDR TREX Building Products & Equipment median
Dividend yield — — 1.20%
Payout ratio 0.00 0.00 0.04

Size

Metric BLDR TREX Building Products & Equipment median
Market cap 6.30b 4.40b 1.18b

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