Reviewing Huttig Building Products (HBP) and Beacon Roofing Supply (BECN)

Beacon Roofing Supply (NASDAQ:BECN) and Huttig Building Products (NASDAQ:HBP) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Volatility & Risk

Beacon Roofing Supply has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Huttig Building Products has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Valuation and Earnings

This table compares Beacon Roofing Supply and Huttig Building Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Beacon Roofing Supply $4.38 billion 0.43 $100.86 million $2.18 12.72
Huttig Building Products $753.20 million 0.11 -$7.10 million N/A N/A

Beacon Roofing Supply has higher revenue and earnings than Huttig Building Products.

Profitability

This table compares Beacon Roofing Supply and Huttig Building Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Beacon Roofing Supply 1.65% 9.94% 3.47%
Huttig Building Products -1.08% -11.93% -2.63%

Institutional and Insider Ownership

52.6% of Huttig Building Products shares are held by institutional investors. 0.8% of Beacon Roofing Supply shares are held by insiders. Comparatively, 9.9% of Huttig Building Products shares are held 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.

Analyst Ratings

This is a breakdown of recent recommendations for Beacon Roofing Supply and Huttig Building Products, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beacon Roofing Supply 1 7 8 0 2.44
Huttig Building Products 0 0 1 0 3.00

Beacon Roofing Supply currently has a consensus price target of $48.07, suggesting a potential upside of 73.36%. Huttig Building Products has a consensus price target of $9.75, suggesting a potential upside of 220.72%. Given Huttig Building Products’ stronger consensus rating and higher probable upside, analysts clearly believe Huttig Building Products is more favorable than Beacon Roofing Supply.

Summary

Beacon Roofing Supply beats Huttig Building Products on 7 of the 12 factors compared between the two stocks.

Beacon Roofing Supply Company Profile

Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and commercial roofing materials, and other complementary building materials to contractors, home builders, retailers, and building materials suppliers. The company's residential roofing products include asphalt shingles, synthetic slates and tiles, clay and concrete tiles, slates, nail base insulations, metal roofing, felts, synthetic underlayment, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, and other accessories. Its non-residential roofing products comprise single-ply roofing, asphalt, metal, modified bitumen, and build-up roofing products; cements and coatings; flat stock and tapered insulations; commercial fasteners; metal edges and flashings; smoke/roof hatches; roofing tools; sheet metal products, including copper, aluminum, and steel; and PVC, thermoplastic olefin, and ethylene propylene diene monomer membrane products. The company also provides complementary building products, such as vinyl, wood, and fiber cement sidings; and stone veneers, windows, doors, skylights, and gutters and downspouts, as well as decking and railing, sealants, air barriers, water proofing, building insulation, concrete restoration systems, and millwork products. In addition, it offers value-added services, including advice and assistance on product identification, specification, and technical support; job site delivery, rooftop loading, and logistical services; tapered insulation design and related layout services; metal fabrication and related metal roofing design and layout services; trade credit; and marketing support for contractors. As of November 20, 2017, the company operated through a network of 383 branches in 48 states of the United States and 6 provinces in Canada. Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia.

Huttig Building Products Company Profile

Huttig Building Products, Inc., together with its subsidiaries, distributes millwork, building materials, and wood products for new residential construction, home improvement, remodeling, and repair work in the United States. It offers various millwork products, including exterior and interior doors, pre-hung and factory finished door units, windows, patio doors, mouldings, frames, stair parts, and columns under the Therma-Tru, Masonite, Woodgrain, HB&G, Simpson Door, Final Frame, BrasPine, Arauco, Windsor Windows, and Rogue Valley Door brands. The company also provides general building products, such as fasteners and connectors, roofing, siding, insulation, flashing, housewrap, decking, railings, and other miscellaneous building products under the Huttig-Grip, Louisiana Pacific, Simpson Strong-Tie, TimberTech, AZEK, RDI, GAF Roofing, Maibec, Knauf, GCP Technologies, Fiberon, Alpha Protech, MFM, Lomanco, and Fortifiber brands; and wood products comprising engineered wood products used in floor systems, wood panels, and lumber, as well as value-added services, such as floor system take-offs, cut-to-length packages and just-in-time, and cross-dock delivery under the Louisiana Pacific and Rosboro brands. It markets and sells its products to building materials dealers; national buying groups; home centers; and industrial users, including makers of manufactured homes through 27 wholesale distribution centers serving 41 states. Huttig Building Products, Inc. was founded in 1885 and is headquartered in St. Louis, Missouri.

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