Contrasting Boise Cascade (BCC) & Its Rivals

by · The Cerbat Gem

Boise Cascade (NYSE:BCCGet Free Report) is one of 15 publicly-traded companies in the “BLDG PRD – WOOD” industry, but how does it weigh in compared to its peers? We will compare Boise Cascade to related companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, risk, profitability and earnings.

Risk & Volatility

Boise Cascade has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Boise Cascade’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

96.2% of Boise Cascade shares are held by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 1.0% of Boise Cascade shares are held by insiders. Comparatively, 1.6% of shares of all “BLDG PRD – WOOD” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Boise Cascade and its peers, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Boise Cascade02502.71
Boise Cascade Competitors30213021201492.35

Boise Cascade currently has a consensus target price of $105.67, suggesting a potential upside of 44.48%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 24.26%. Given Boise Cascade’s stronger consensus rating and higher possible upside, equities analysts clearly believe Boise Cascade is more favorable than its peers.

Valuation and Earnings

This table compares Boise Cascade and its peers revenue, earnings per share (EPS) and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Boise Cascade$6.40 billion$132.84 million20.78
Boise Cascade Competitors$4.73 billion$261.89 million22.63

Boise Cascade has higher revenue, but lower earnings than its peers. Boise Cascade is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Boise Cascade pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Boise Cascade pays out 25.0% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.9% and pay out 104.6% of their earnings in the form of a dividend. Boise Cascade has raised its dividend for 6 consecutive years.

Profitability

This table compares Boise Cascade and its peers’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Boise Cascade2.07%6.54%4.09%
Boise Cascade Competitors10.27%4.59%3.76%

Summary

Boise Cascade beats its peers on 8 of the 15 factors compared.

Boise Cascade Company Profile

(Get Free Report)

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.