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 $7.1B against $5.7B — 1.2× the size. Trex Company, Inc. trades at the lower P/E: 32.2× against 168×. Trex Company, Inc. grew revenue faster over the last twelve months: 8.58% against −8.25%. Trex Company, Inc. has the higher net margin (13.9% vs 0.28%) and the higher return on invested capital (13.1% vs 2.21%). 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 168.20 32.21 23.86
P/S 0.47 4.39 2.05
P/B 1.65 5.56 2.97
Price to free cash flow 25.86 29.05 18.37
EV/EBITDA 12.48 17.96 13.32
EV/Sales 0.79 4.52 2.08
Earnings yield 0.59% 3.10% 3.10%
Free cash flow yield 3.87% 3.44% 4.02%

Profitability

Metric BLDR TREX Building Products & Equipment median
Gross margin 28.48% 37.09% 31.88%
Operating margin 2.13% 19.17% 7.18%
Net margin 0.28% 13.89% 4.11%
Free cash flow margin 1.81% 15.10% 7.39%
Return on equity 0.97% 17.35% 5.95%
Return on assets 0.36% 11.79% 3.90%
Return on invested capital 2.21% 13.05% 5.54%

Growth

Metric BLDR TREX Building Products & Equipment median
Revenue growth (TTM) (8.25%) 8.58% 6.27%
EPS growth (last fiscal year) (57.06%) (19.55%) (28.29%)
Revenue growth, 5-year CAGR 12.16% 5.92% 4.81%
Net income growth, 5-year CAGR 6.78% 1.63% 0.00%

Health

Metric BLDR TREX Building Products & Equipment median
Debt to equity 1.13 0.17 0.55
Current ratio 1.85 1.23 1.83
Net debt to EBITDA 3.09 0.40 1.45

Dividend

Metric BLDR TREX Building Products & Equipment median
Dividend yield — — 1.38%
Payout ratio — — 0.31

Size

Metric BLDR TREX Building Products & Equipment median
Market cap 7.05b 5.71b 3.05b

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