Builders FirstSource, Inc. (BLDR) vs Advanced Drainage Systems, Inc. (WMS)

Builders FirstSource, Inc. and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Advanced Drainage Systems, Inc. is the larger, with a market value of $9.7B against $6.3B — 1.5× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 22.8× against 64.3×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against −9.38%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs 0.71%) and the higher return on invested capital (12.3% vs 3.19%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 15 and Builders FirstSource, Inc. on 7.

Valuation

Metric BLDR WMS Building Products & Equipment median
P/E 64.32 22.84 24.54
P/S 0.44 3.16 2.00
P/B 1.59 5.60 3.02
Price to free cash flow 9.81 18.49 18.49
EV/EBITDA 10.54 13.08 12.63
EV/Sales 0.75 3.65 2.14
Earnings yield 1.55% 4.38% 2.74%
Free cash flow yield 10.20% 5.41% 3.58%

Profitability

Metric BLDR WMS Building Products & Equipment median
Gross margin 29.19% 38.65% 29.19%
Operating margin 3.01% 20.74% 6.84%
Net margin 0.71% 14.00% 4.05%
Free cash flow margin 4.49% 17.10% 8.72%
Return on equity 2.51% 25.71% 9.28%
Return on assets 0.90% 10.71% 2.88%
Return on invested capital 3.19% 12.34% 5.16%

Growth

Metric BLDR WMS Building Products & Equipment median
Revenue growth (TTM) (9.38%) 10.37% 3.11%
EPS growth (last fiscal year) (57.06%) (5.56%) —
Revenue growth, 5-year CAGR 12.16% 9.00% 5.37%
Net income growth, 5-year CAGR 6.78% 18.13% 0.00%

Health

Metric BLDR WMS Building Products & Equipment median
Debt to equity 1.15 0.95 0.43
Current ratio 1.79 2.12 1.82
Net debt to EBITDA 3.09 1.80 0.98

Dividend

Metric BLDR WMS Building Products & Equipment median
Dividend yield — 0.35% 1.20%
Payout ratio 0.00 0.08 0.04

Size

Metric BLDR WMS Building Products & Equipment median
Market cap 6.30b 9.72b 1.18b

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