Reviewing JELD-WEN (NYSE:JELD) and Boise Cascade (NYSE:BCC)

Boise Cascade (NYSE:BCC) and JELD-WEN (NYSE:JELD) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Risk and Volatility

Boise Cascade has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, JELD-WEN has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Valuation & Earnings

This table compares Boise Cascade and JELD-WEN”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boise Cascade	$6.72 billion	0.49	$376.35 million	$8.01	10.84
JELD-WEN	$3.78 billion	0.08	-$189.02 million	($4.03)	-0.90

Boise Cascade has higher revenue and earnings than JELD-WEN. JELD-WEN is trading at a lower price-to-earnings ratio than Boise Cascade, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.2% of Boise Cascade shares are owned by institutional investors. Comparatively, 95.0% of JELD-WEN shares are owned by institutional investors. 1.1% of Boise Cascade shares are owned by company insiders. Comparatively, 1.2% of JELD-WEN 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.

Profitability

This table compares Boise Cascade and JELD-WEN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boise Cascade	4.72%	14.36%	8.95%
JELD-WEN	-9.49%	3.70%	0.88%

Analyst Recommendations

This is a summary of current ratings and price targets for Boise Cascade and JELD-WEN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boise Cascade	1	3	3	0	2.29
JELD-WEN	1	7	0	0	1.88

Boise Cascade presently has a consensus price target of $125.00, suggesting a potential upside of 44.02%. JELD-WEN has a consensus price target of $7.34, suggesting a potential upside of 101.47%. Given JELD-WEN’s higher probable upside, analysts plainly believe JELD-WEN is more favorable than Boise Cascade.

Summary

Boise Cascade beats JELD-WEN on 11 of the 14 factors compared between the two stocks.

About Boise Cascade

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.

About JELD-WEN

JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.