Apogee Enterprises Inc versus Builders FirstSource Inc Head to Head Compare

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This is a head to head compare of Apogee Enterprises Inc (NASDAQ:APOG) and Builders FirstSource Inc (NASDAQ:BLDR) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
APOG -8.5% +25.8% +18.8%
BLDR +39.4% +46.6% +23.7%

These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Builders FirstSource Inc has substantially higher revenue in the last year than Apogee Enterprises Inc. Raw revenue comps do not affect the head to head rating.

Both APOG and BLDR show positive earnings over the last year with the edge to BLDR.

Net Income

BLDR generates larger revenue per employee ($255,000) than APOG ($213,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Apogee Enterprises Inc generates $1.14 in revenue for every $1 of expense, very similar to Builders FirstSource Inc's $1.05.

Revenue per Dollar of Expense

APOG generates $0.03 in levered free cash flow for every $1 of revenue, while BLDR generates a cash flow loss of $-0.00 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. Builders FirstSource Inc is growing revenue massively faster than Apogee Enterprises Inc.

Revenue Growth

For every $1 in revenue, the stock market prices in $1.57 in market cap for APOG and $0.22 in market cap for BLDR.

Price to Sales

Builders FirstSource Inc (NASDAQ:BLDR)
Apogee Enterprises Inc (NASDAQ:APOG) : 65 to 35