TREX vs. BLDR, LII, OC, MAS, AOS, UFPI, SSD, AAON, AWI, and GFF
Should you be buying Trex stock or one of its competitors? The main competitors of Trex include Builders FirstSource (BLDR), Lennox International (LII), Owens Corning (OC), Masco (MAS), A. O. Smith (AOS), UFP Industries (UFPI), Simpson Manufacturing (SSD), AAON (AAON), Armstrong World Industries (AWI), and Griffon (GFF). These companies are all part of the "building products" industry.
Builders FirstSource (NYSE:BLDR) and Trex (NYSE:TREX) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, community ranking, valuation, analyst recommendations, dividends, media sentiment, earnings and risk.
Builders FirstSource received 109 more outperform votes than Trex when rated by MarketBeat users. Likewise, 64.88% of users gave Builders FirstSource an outperform vote while only 55.40% of users gave Trex an outperform vote.
Trex has a net margin of 20.60% compared to Trex's net margin of 8.57%. Trex's return on equity of 38.66% beat Builders FirstSource's return on equity.
In the previous week, Builders FirstSource had 6 more articles in the media than Trex. MarketBeat recorded 14 mentions for Builders FirstSource and 8 mentions for Trex. Builders FirstSource's average media sentiment score of 1.03 beat Trex's score of 1.00 indicating that Trex is being referred to more favorably in the news media.
Builders FirstSource has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Trex has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
95.5% of Builders FirstSource shares are owned by institutional investors. Comparatively, 96.0% of Trex shares are owned by institutional investors. 1.8% of Builders FirstSource shares are owned by company insiders. Comparatively, 0.7% of Trex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Builders FirstSource has higher revenue and earnings than Trex. Builders FirstSource is trading at a lower price-to-earnings ratio than Trex, indicating that it is currently the more affordable of the two stocks.
Builders FirstSource presently has a consensus target price of $196.27, suggesting a potential upside of 22.06%. Trex has a consensus target price of $89.47, suggesting a potential upside of 3.46%. Given Trex's stronger consensus rating and higher possible upside, equities analysts clearly believe Builders FirstSource is more favorable than Trex.
Summary
Builders FirstSource beats Trex on 12 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TREX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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