Financial Comparison: Boise Cascade (BCC) & Its Competitors
by Mitch Edgeman · The Markets DailyBoise Cascade (NYSE:BCC – Get Free Report) is one of 15 public companies in the “BLDG PRD – WOOD” industry, but how does it compare to its competitors? We will compare Boise Cascade to related companies based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.
Analyst Recommendations
This is a summary of current ratings and target prices for Boise Cascade and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boise Cascade | 1 | 1 | 5 | 0 | 2.57 |
| Boise Cascade Competitors | 300 | 1299 | 1199 | 49 | 2.35 |
Boise Cascade currently has a consensus target price of $105.67, indicating a potential upside of 54.59%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 30.11%. Given Boise Cascade’s stronger consensus rating and higher possible upside, equities analysts clearly believe Boise Cascade is more favorable than its competitors.
Profitability
This table compares Boise Cascade and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boise Cascade | 2.07% | 6.54% | 4.09% |
| Boise Cascade Competitors | 10.27% | 4.59% | 3.76% |
Institutional and Insider Ownership
96.2% of Boise Cascade shares are owned by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are owned by institutional investors. 1.0% of Boise Cascade shares are owned by insiders. Comparatively, 1.5% of shares of all “BLDG PRD – WOOD” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Boise Cascade and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Boise Cascade | $6.40 billion | $132.84 million | 19.42 |
| Boise Cascade Competitors | $4.73 billion | $261.89 million | 21.91 |
Boise Cascade has higher revenue, but lower earnings than its competitors. Boise Cascade is trading at a lower price-to-earnings ratio than its competitors, 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 1.3%. 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 2.0% and pay out 105.9% of their earnings in the form of a dividend. Boise Cascade has increased its dividend for 6 consecutive years.
Risk and Volatility
Boise Cascade has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Boise Cascade’s competitors have a beta of 1.40, suggesting that their average stock price is 40% more volatile than the S&P 500.
Summary
Boise Cascade beats its competitors on 8 of the 15 factors compared.
Boise Cascade Company Profile
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.