BlueLinx (NYSE:BXC) versus Worthington Enterprises (NYSE:WOR) Critical Survey

BlueLinx (NYSE:BXC) and Worthington Enterprises (NYSE:WOR) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Risk and Volatility

BlueLinx has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Worthington Enterprises has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares BlueLinx and Worthington Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlueLinx	0.96%	3.48%	1.39%
Worthington Enterprises	8.91%	17.70%	9.80%

Earnings and Valuation

This table compares BlueLinx and Worthington Enterprises”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlueLinx	$2.95 billion	0.20	$53.12 million	$3.37	21.81
Worthington Enterprises	$1.20 billion	2.27	$96.05 million	$2.13	25.72

Worthington Enterprises has lower revenue, but higher earnings than BlueLinx. BlueLinx is trading at a lower price-to-earnings ratio than Worthington Enterprises, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 51.6% of Worthington Enterprises shares are held by institutional investors. 3.4% of BlueLinx shares are held by company insiders. Comparatively, 3.4% of Worthington Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for BlueLinx and Worthington Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	1	2	0	2.67
Worthington Enterprises	1	1	2	1	2.60

BlueLinx currently has a consensus price target of $91.00, suggesting a potential upside of 23.79%. Worthington Enterprises has a consensus price target of $62.33, suggesting a potential upside of 13.79%. Given BlueLinx’s stronger consensus rating and higher probable upside, research analysts plainly believe BlueLinx is more favorable than Worthington Enterprises.

Summary

Worthington Enterprises beats BlueLinx on 8 of the 14 factors compared between the two stocks.

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.

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.