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 $5.8B against $4.7B — 1.2× the size. Trex Company, Inc. trades at the lower P/E: 27.2× against 59.4×. 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 59.40 27.22 23.15
P/S 0.41 3.87 2.02
P/B 1.47 4.63 2.81
Price to free cash flow 9.06 23.55 16.84
EV/EBITDA 10.07 15.69 12.85
EV/Sales 0.72 4.08 2.04
Earnings yield 1.68% 3.67% 2.76%
Free cash flow yield 11.04% 4.25% 4.23%

Profitability

Metric BLDR TREX Building Products & Equipment median
Gross margin 29.19% 38.20% 29.19%
Operating margin 3.01% 20.17% 6.99%
Net margin 0.71% 14.68% 4.05%
Free cash flow margin 4.49% 16.45% 7.60%
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%) (34.13%)
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 — — 1.43%
Payout ratio — — 0.29

Size

Metric BLDR TREX Building Products & Equipment median
Market cap 5.78b 4.71b 1.17b

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