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AZEK vs. BLDR: A Head-to-Head Stock Comparison

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Here’s a clear look at AZEK and BLDR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

BLDR’s market capitalization of 14.06 billion USD is significantly greater than AZEK’s 7.82 billion USD, highlighting its more substantial market valuation.

With betas of 1.82 for AZEK and 1.70 for BLDR, both stocks show similar sensitivity to overall market movements.

SymbolAZEKBLDR
Company NameThe AZEK Company Inc.Builders FirstSource, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryConstructionConstruction
CEOJesse G. SinghPeter M. Jackson CPA
Price54.35 USD127.22 USD
Market Cap7.82 billion USD14.06 billion USD
Beta1.821.70
ExchangeNYSENYSE
IPO DateJune 12, 2020June 28, 2005
ADRNoNo

Historical Performance

This chart compares the performance of AZEK and BLDR by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AZEK vs. BLDR: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AZEK

10.79%

Construction Industry

Max
40.76%
Q3
26.03%
Median
16.38%
Q1
5.66%
Min
-4.01%

AZEK’s Return on Equity of 10.79% is on par with the norm for the Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.

BLDR

21.02%

Construction Industry

Max
40.76%
Q3
26.03%
Median
16.38%
Q1
5.66%
Min
-4.01%

BLDR’s Return on Equity of 21.02% is on par with the norm for the Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.

AZEK vs. BLDR: A comparison of their ROE against the Construction industry benchmark.

Return on Invested Capital

AZEK

20.74%

Construction Industry

Max
27.38%
Q3
15.45%
Median
9.91%
Q1
5.86%
Min
2.28%

In the upper quartile for the Construction industry, AZEK’s Return on Invested Capital of 20.74% signifies a highly effective use of its capital to generate profits when compared to its peers.

BLDR

11.16%

Construction Industry

Max
27.38%
Q3
15.45%
Median
9.91%
Q1
5.86%
Min
2.28%

BLDR’s Return on Invested Capital of 11.16% is in line with the norm for the Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.

AZEK vs. BLDR: A comparison of their ROIC against the Construction industry benchmark.

Net Profit Margin

AZEK

9.92%

Construction Industry

Max
24.94%
Q3
14.61%
Median
10.07%
Q1
2.23%
Min
-9.49%

AZEK’s Net Profit Margin of 9.92% is aligned with the median group of its peers in the Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.

BLDR

5.66%

Construction Industry

Max
24.94%
Q3
14.61%
Median
10.07%
Q1
2.23%
Min
-9.49%

BLDR’s Net Profit Margin of 5.66% is aligned with the median group of its peers in the Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.

AZEK vs. BLDR: A comparison of their Net Profit Margin against the Construction industry benchmark.

Operating Profit Margin

AZEK

36.60%

Construction Industry

Max
24.04%
Q3
19.17%
Median
13.63%
Q1
7.69%
Min
-7.88%

AZEK’s Operating Profit Margin of 36.60% is exceptionally high, placing it well above the typical range for the Construction industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

BLDR

8.70%

Construction Industry

Max
24.04%
Q3
19.17%
Median
13.63%
Q1
7.69%
Min
-7.88%

BLDR’s Operating Profit Margin of 8.70% is around the midpoint for the Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.

AZEK vs. BLDR: A comparison of their Operating Margin against the Construction industry benchmark.

Profitability at a Glance

SymbolAZEKBLDR
Return on Equity (TTM)10.79%21.02%
Return on Assets (TTM)6.56%8.00%
Return on Invested Capital (TTM)20.74%11.16%
Net Profit Margin (TTM)9.92%5.66%
Operating Profit Margin (TTM)36.60%8.70%
Gross Profit Margin (TTM)37.19%32.15%

Financial Strength

Current Ratio

AZEK

2.45

Construction Industry

Max
4.22
Q3
2.59
Median
1.84
Q1
1.44
Min
0.96

AZEK’s Current Ratio of 2.45 aligns with the median group of the Construction industry, indicating that its short-term liquidity is in line with its sector peers.

BLDR

1.82

Construction Industry

Max
4.22
Q3
2.59
Median
1.84
Q1
1.44
Min
0.96

BLDR’s Current Ratio of 1.82 aligns with the median group of the Construction industry, indicating that its short-term liquidity is in line with its sector peers.

AZEK vs. BLDR: A comparison of their Current Ratio against the Construction industry benchmark.

Debt-to-Equity Ratio

AZEK

0.30

Construction Industry

Max
1.75
Q3
1.15
Median
0.84
Q1
0.56
Min
0.05

Falling into the lower quartile for the Construction industry, AZEK’s Debt-to-Equity Ratio of 0.30 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BLDR

1.17

Construction Industry

Max
1.75
Q3
1.15
Median
0.84
Q1
0.56
Min
0.05

BLDR’s leverage is in the upper quartile of the Construction industry, with a Debt-to-Equity Ratio of 1.17. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AZEK vs. BLDR: A comparison of their D/E Ratio against the Construction industry benchmark.

Interest Coverage Ratio

AZEK

12.45

Construction Industry

Max
30.91
Q3
15.60
Median
7.16
Q1
2.73
Min
-4.26

AZEK’s Interest Coverage Ratio of 12.45 is positioned comfortably within the norm for the Construction industry, indicating a standard and healthy capacity to cover its interest payments.

BLDR

6.27

Construction Industry

Max
30.91
Q3
15.60
Median
7.16
Q1
2.73
Min
-4.26

BLDR’s Interest Coverage Ratio of 6.27 is positioned comfortably within the norm for the Construction industry, indicating a standard and healthy capacity to cover its interest payments.

AZEK vs. BLDR: A comparison of their Interest Coverage against the Construction industry benchmark.

Financial Strength at a Glance

SymbolAZEKBLDR
Current Ratio (TTM)2.451.82
Quick Ratio (TTM)1.471.07
Debt-to-Equity Ratio (TTM)0.301.17
Debt-to-Asset Ratio (TTM)0.190.45
Net Debt-to-EBITDA Ratio (TTM)0.812.53
Interest Coverage Ratio (TTM)12.456.27

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZEK and BLDR. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZEK vs. BLDR: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZEK vs. BLDR: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZEK vs. BLDR: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AZEK

0.00%

Construction Industry

Max
2.43%
Q3
1.20%
Median
0.59%
Q1
0.00%
Min
0.00%

AZEK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BLDR

0.00%

Construction Industry

Max
2.43%
Q3
1.20%
Median
0.59%
Q1
0.00%
Min
0.00%

BLDR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AZEK vs. BLDR: A comparison of their Dividend Yield against the Construction industry benchmark.

Dividend Payout Ratio

AZEK

0.00%

Construction Industry

Max
84.31%
Q3
28.17%
Median
11.69%
Q1
0.00%
Min
0.00%

AZEK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BLDR

0.00%

Construction Industry

Max
84.31%
Q3
28.17%
Median
11.69%
Q1
0.00%
Min
0.00%

BLDR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AZEK vs. BLDR: A comparison of their Payout Ratio against the Construction industry benchmark.

Dividend at a Glance

SymbolAZEKBLDR
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

AZEK

51.82

Construction Industry

Max
52.50
Q3
32.30
Median
22.66
Q1
14.68
Min
9.62

A P/E Ratio of 51.82 places AZEK in the upper quartile for the Construction industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BLDR

15.80

Construction Industry

Max
52.50
Q3
32.30
Median
22.66
Q1
14.68
Min
9.62

BLDR’s P/E Ratio of 15.80 is within the middle range for the Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AZEK vs. BLDR: A comparison of their P/E Ratio against the Construction industry benchmark.

Forward P/E to Growth Ratio

AZEK

3.38

Construction Industry

Max
4.11
Q3
2.42
Median
1.60
Q1
1.15
Min
0.27

The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.

BLDR

0.61

Construction Industry

Max
4.11
Q3
2.42
Median
1.60
Q1
1.15
Min
0.27

The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.

AZEK vs. BLDR: A comparison of their Forward PEG Ratio against the Construction industry benchmark.

Price-to-Sales Ratio

AZEK

5.14

Construction Industry

Max
5.26
Q3
3.38
Median
1.63
Q1
0.99
Min
0.09

AZEK’s P/S Ratio of 5.14 is in the upper echelon for the Construction industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

BLDR

0.87

Construction Industry

Max
5.26
Q3
3.38
Median
1.63
Q1
0.99
Min
0.09

In the lower quartile for the Construction industry, BLDR’s P/S Ratio of 0.87 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AZEK vs. BLDR: A comparison of their P/S Ratio against the Construction industry benchmark.

Price-to-Book Ratio

AZEK

5.38

Construction Industry

Max
12.88
Q3
6.91
Median
3.04
Q1
1.93
Min
0.71

AZEK’s P/B Ratio of 5.38 is within the conventional range for the Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

BLDR

3.31

Construction Industry

Max
12.88
Q3
6.91
Median
3.04
Q1
1.93
Min
0.71

BLDR’s P/B Ratio of 3.31 is within the conventional range for the Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AZEK vs. BLDR: A comparison of their P/B Ratio against the Construction industry benchmark.

Valuation at a Glance

SymbolAZEKBLDR
Price-to-Earnings Ratio (P/E, TTM)51.8215.80
Forward PEG Ratio (TTM)3.380.61
Price-to-Sales Ratio (P/S, TTM)5.140.87
Price-to-Book Ratio (P/B, TTM)5.383.31
Price-to-Free Cash Flow Ratio (P/FCF, TTM)37.6010.81
EV-to-EBITDA (TTM)22.239.66
EV-to-Sales (TTM)5.341.18