BlueLinx Holdings Inc. (BXC) vs DNOW Inc. (DNOW)

BlueLinx Holdings Inc. and DNOW Inc. are both Industrial Distribution companies. DNOW Inc. is the larger, with a market value of $2.9B against $580.2M — 5.0× the size. DNOW Inc. grew revenue faster over the last twelve months: 69.8% against 2.13%. BlueLinx Holdings Inc. has the higher net margin (−0.06% vs −4.63%) and the higher return on invested capital (2.42% vs −4.78%). Across the 20 metrics below, BlueLinx Holdings Inc. leads on 13 and DNOW Inc. on 7.

Valuation

Metric BXC DNOW Industrial Distribution median
P/E n/m n/m 28.81
P/S 0.20 0.71 1.10
P/B 0.96 1.38 3.59
Price to free cash flow 10.25 22.50 22.50
EV/EBITDA 11.04 n/m 15.13
EV/Sales 0.29 0.80 1.31
Earnings yield (0.31%) (6.71%) 3.16%
Free cash flow yield 9.75% 4.44% 3.85%

Profitability

Metric BXC DNOW Industrial Distribution median
Gross margin 15.84% 15.85% 30.34%
Operating margin 1.15% (4.60%) 8.06%
Net margin (0.06%) (4.63%) 4.95%
Free cash flow margin 1.93% 3.33% 4.67%
Return on equity (0.31%) (11.60%) 14.29%
Return on assets (0.12%) (6.90%) 5.30%
Return on invested capital 2.42% (4.78%) 8.13%

Growth

Metric BXC DNOW Industrial Distribution median
Revenue growth (TTM) 2.13% 69.84% 7.80%
EPS growth (last fiscal year) (99.56%) (202.70%) —
Revenue growth, 5-year CAGR (0.94%) 11.74% 9.01%
Net income growth, 5-year CAGR (69.34%) 0.00% 0.99%

Health

Metric BXC DNOW Industrial Distribution median
Debt to equity 0.95 0.23 0.53
Current ratio 4.01 2.14 2.47
Net debt to EBITDA 2.84 (8.52) 1.17

Dividend

Metric BXC DNOW Industrial Distribution median
Dividend yield — — 1.54%
Payout ratio 0.00 0.00 0.00

Size

Metric BXC DNOW Industrial Distribution median
Market cap 580.24m 2.88b 5.60b

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