Head-To-Head Contrast: Boise Cascade (BCC) versus Its Peers

by · The Markets Daily

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

Profitability

This table compares Boise Cascade and its rivals’ 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%

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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Boise Cascade and its rivals, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Boise Cascade11502.57
Boise Cascade Competitors30012991200492.35

Boise Cascade currently has a consensus target price of $105.67, suggesting a potential upside of 41.88%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 25.47%. Given Boise Cascade’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Boise Cascade is more favorable than its rivals.

Institutional & 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, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Boise Cascade has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Boise Cascade’s rivals have a beta of 1.40, suggesting that their average share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Boise Cascade and its rivals top-line revenue, earnings per share and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Boise Cascade$6.40 billion$132.84 million21.16
Boise Cascade Competitors$4.73 billion$261.89 million22.45

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

Summary

Boise Cascade beats its rivals 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.