Boise Cascade, L.L.C. (NYSE: BCC) and Deltic Timber Corporation (NYSE:DEL) are both small-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, risk, earnings and valuation.
Deltic Timber Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Boise Cascade, L.L.C. does not pay a dividend. Deltic Timber Corporation pays out 48.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Boise Cascade, L.L.C. and Deltic Timber Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boise Cascade, L.L.C.||0||2||1||0||2.33|
|Deltic Timber Corporation||1||5||4||0||2.30|
Boise Cascade, L.L.C. currently has a consensus target price of $30.67, indicating a potential downside of 2.18%. Deltic Timber Corporation has a consensus target price of $48.40, indicating a potential downside of 33.94%. Given Boise Cascade, L.L.C.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Boise Cascade, L.L.C. is more favorable than Deltic Timber Corporation.
Risk and Volatility
Boise Cascade, L.L.C. has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Deltic Timber Corporation has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Institutional and Insider Ownership
95.6% of Boise Cascade, L.L.C. shares are owned by institutional investors. Comparatively, 81.0% of Deltic Timber Corporation shares are owned by institutional investors. 1.0% of Boise Cascade, L.L.C. shares are owned by company insiders. Comparatively, 12.1% of Deltic Timber Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Boise Cascade, L.L.C. and Deltic Timber Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boise Cascade, L.L.C.||1.13%||8.32%||3.17%|
|Deltic Timber Corporation||4.47%||4.02%||1.79%|
Earnings and Valuation
This table compares Boise Cascade, L.L.C. and Deltic Timber Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boise Cascade, L.L.C.||$4.10 billion||0.29||$172.04 million||$1.20||26.13|
|Deltic Timber Corporation||$221.95 million||4.02||$46.71 million||$0.82||89.35|
Boise Cascade, L.L.C. has higher revenue and earnings than Deltic Timber Corporation. Boise Cascade, L.L.C. is trading at a lower price-to-earnings ratio than Deltic Timber Corporation, indicating that it is currently the more affordable of the two stocks.
Boise Cascade, L.L.C. beats Deltic Timber Corporation on 10 of the 16 factors compared between the two stocks.
About Boise Cascade, L.L.C.
Boise Cascade Company is an integrated wood products manufacturer and building materials distributor with operations throughout the United States and one manufacturing facility in Canada. The Company is also a producer of engineered wood products (EWP) and plywood in North America. The Company operates through three segments: Wood Products, Building Materials Distribution, and Corporate and Other. The Company’s products are used primarily in new residential construction, residential repair-and-remodeling projects, light commercial construction and industrial applications. The Company manufactures laminated veneer lumber (LVL), I-joists, and laminated beams, which are referred to as EWP. The Company’s Building Materials Distribution segment sells a range of building materials, including OSB, plywood and lumber (collectively commodities). The Company’s subsidiaries include Boise Cascade Wood Products, L.L.C. and Boise Cascade Building Materials Distribution, L.L.C.
About Deltic Timber Corporation
Deltic Timber Corporation is a vertically integrated natural resources company. The Company is engaged in the growing and harvesting of timber and the manufacturing and marketing of lumber and medium density fiberboard (MDF). It operates through four segments: Woodlands, which manages all aspects of the Company’s timberlands; Manufacturing, which consists of its approximately two sawmills that manufacture a range of softwood lumber products and the Del-Tin Fiber plant that produces MDF; Real Estate, which includes the Company’s four real estate developments and a related country club operation, and Corporate. It is also engaged in real estate development in central Arkansas. As of December 31, 2016, it developed and operated its own seed orchard. Its sawmills are located at Ola in central Arkansas and at Waldo in south Arkansas. It is engaged in developing the Chenal Valley, which is an upscale planned community, with approximately 4,300 acres of residential and commercial properties.
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