BlueLinx (NYSE:BXC) & Finning International (OTCMKTS:FINGF) Critical Review

BlueLinx (NYSE:BXC) and Finning International (OTCMKTS:FINGF) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 35.6% of Finning International shares are held by institutional investors. 3.4% of BlueLinx shares 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.

Earnings and Valuation

This table compares BlueLinx and Finning International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlueLinx	$3.14 billion	0.29	$48.54 million	$5.33	19.88
Finning International	N/A	N/A	N/A	$1.76	18.48

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for BlueLinx and Finning International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	0	3	0	3.00
Finning International	0	0	0	0	N/A

BlueLinx currently has a consensus target price of $135.67, suggesting a potential upside of 28.04%. Finning International has a consensus target price of $31.00, suggesting a potential downside of 4.62%. Given BlueLinx’s higher possible upside, equities analysts clearly believe BlueLinx is more favorable than Finning International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlueLinx	1.26%	12.14%	4.95%
Finning International	N/A	N/A	N/A

Summary

BlueLinx beats Finning International on 10 of the 10 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 Finning International

Finning International Inc. sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally. The company offers articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, drills, electric rope shovels, excavators, hydraulic mining shovels, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, skid steer and compact track loaders, track loaders, underground-hard rock, wheel loaders, and wheel tractor-scrapers, as well as mobile and stationary generator sets. It also provides blades, buckets – skid steer loaders, forks, hammers, augers, brooms, material handling, mulchers, grapples, couplers loaders, backhoes, buckets telehandlers, trenchers, stump grinders, multi-processors, buckets loaders, electric power controls, rakes, couplers excavators, bale grabs, cold planers, compactors, flail mowers, buckets mining shovels, pulverizers, nursery products, buckets compact wheels loaders, buckets backhoe rears, bale spears, tillers, shears, buckets backhoe fronts, tilt rotate systems, adapters, rippers, saws, snow products, and buckets excavators. In addition, it offers power systems for electric power generation, oil and gas, industrial, and marine power systems; and rents generators, power distribution products, and air compressors. Further, the company provides aftercare, fluid analysis, finning managed, financing, warranty, customer training solutions, as well as rebuilds, rentals, and repair services. It serves agriculture, construction, forestry, electric power generation, industrial and waste, industrial OEMs, marine, mining, oil and gas, paving, and quarrying industries. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was incorporated in 1933 and is headquartered in Surrey, Canada.