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 $9.3B against $7.1B — 1.3× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 23.3× against 176×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 9.18% against −8.25%. Advanced Drainage Systems, Inc. has the higher net margin (12.4% vs 0.28%) and the higher return on invested capital (11.9% vs 2.21%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 17 and Builders FirstSource, Inc. on 5.

Valuation

Metric BLDR WMS Building Products & Equipment median
P/E 176.44 23.33 23.33
P/S 0.49 2.85 2.09
P/B 1.73 5.22 2.85
Price to free cash flow 27.13 16.89 18.42
EV/EBITDA 12.84 12.37 13.29
EV/Sales 0.81 3.34 2.28
Earnings yield 0.57% 4.29% 3.04%
Free cash flow yield 3.69% 5.92% 4.26%

Profitability

Metric BLDR WMS Building Products & Equipment median
Gross margin 28.48% 38.36% 31.88%
Operating margin 2.13% 19.62% 7.18%
Net margin 0.28% 12.44% 4.11%
Free cash flow margin 1.81% 0.00% 6.41%
Return on equity 0.97% 22.36% 5.95%
Return on assets 0.36% 9.49% 3.90%
Return on invested capital 2.21% 11.90% 5.54%

Growth

Metric BLDR WMS Building Products & Equipment median
Revenue growth (TTM) (8.25%) 9.18% 6.27%
EPS growth (last fiscal year) (57.06%) (5.56%) (28.29%)
Revenue growth, 5-year CAGR 12.16% 9.00% 4.81%
Net income growth, 5-year CAGR 6.78% 18.13% 0.00%

Health

Metric BLDR WMS Building Products & Equipment median
Debt to equity 1.13 0.97 0.55
Current ratio 1.85 2.13 1.83
Net debt to EBITDA 3.09 1.80 1.45

Dividend

Metric BLDR WMS Building Products & Equipment median
Dividend yield — 0.62% 1.37%
Payout ratio — 0.14 0.28

Size

Metric BLDR WMS Building Products & Equipment median
Market cap 7.05b 9.25b 3.22b

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