Critical Review: SearchCore (OTCMKTS:WOFA) and BlueLinx (NYSE:BXC)

SearchCore (OTCMKTS:WOFA) and BlueLinx (NYSE:BXC) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

This table compares SearchCore and BlueLinx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SearchCore	N/A	N/A	N/A
BlueLinx	0.96%	3.48%	1.39%

Analyst Ratings

This is a summary of recent recommendations and price targets for SearchCore and BlueLinx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SearchCore	0	0	0	0	0.00
BlueLinx	0	1	2	0	2.67

BlueLinx has a consensus price target of $91.00, indicating a potential upside of 15.57%. Given BlueLinx’s stronger consensus rating and higher possible upside, analysts plainly believe BlueLinx is more favorable than SearchCore.

Institutional & Insider Ownership

90.8% of BlueLinx shares are owned by institutional investors. 33.3% of SearchCore shares are owned by insiders. Comparatively, 3.8% of BlueLinx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares SearchCore and BlueLinx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SearchCore	N/A	N/A	N/A	N/A	N/A
BlueLinx	$2.95 billion	0.21	$53.12 million	$3.37	23.36

BlueLinx has higher revenue and earnings than SearchCore.

Summary

BlueLinx beats SearchCore on 8 of the 9 factors compared between the two stocks.

About SearchCore

Wisdom Homes of America, Inc. engages in opening and operating manufactured home retail centers for homebuyers in Texas. The company was formerly known as SearchCore, Inc. and changed its name to Wisdom Homes of America, Inc. in March 2015. Wisdom Homes of America, Inc. was founded in 2003 and is headquartered in Tyler, Texas.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.