TREX vs UFPI

For growth investors, Trex Company, Inc.

(TREX) is the stronger pick with 2. 0% revenue growth year-over-year, versus -5. 0% for UFP Industries, Inc. (UFPI). UFP Industries, Inc. (UFPI) offers the better valuation at 16. 8x trailing P/E (15. 9x forward), making it the more compelling value choice. Analysts rate UFP Industries, Inc. (UFPI) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, UFP Industries, Inc.

(UFPI) is the cheapest at 16. 8x versus Trex Company, Inc. at 22. 0x. On forward P/E, UFP Industries, Inc. is actually cheaper at 15. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: UFP Industries, Inc. wins at 3. 49x versus Trex Company, Inc. 's 7. 16x.

Over the past 5 years, UFP Industries, Inc.

(UFPI) delivered a total return of +1. 5%, compared to -64. 0% for Trex Company, Inc. (TREX). Over 10 years, the gap is even starker: TREX returned +239. 9% versus UFPI's +230. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), UFP Industries, Inc.

(UFPI) is the lower-risk stock at 0. 92β versus Trex Company, Inc. 's 1. 47β — meaning TREX is approximately 59% more volatile than UFPI relative to the S&P 500. On balance sheet safety, UFP Industries, Inc. (UFPI) carries a lower debt/equity ratio of 7% versus 22% for Trex Company, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Trex Company, Inc.

(TREX) is pulling ahead at 2. 0% versus -5. 0% for UFP Industries, Inc. (UFPI). On earnings-per-share growth, the picture is similar: Trex Company, Inc. grew EPS -14. 8% year-over-year, compared to -26. 1% for UFP Industries, Inc.. Over a 3-year CAGR, TREX leads at 2. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Trex Company, Inc.

(TREX) is the more profitable company, earning 16. 2% net margin versus 4. 7% for UFP Industries, Inc. — meaning it keeps 16. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TREX leads at 22. 0% versus 5. 8% for UFPI. At the gross margin level — before operating expenses — TREX leads at 39. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, UFP Industries, Inc. (UFPI) is the more undervalued stock at a PEG of 3. 49x versus Trex Company, Inc. 's 7. 16x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, UFP Industries, Inc. (UFPI) trades at 15. 9x forward P/E versus 24. 0x for Trex Company, Inc. — 8. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UFPI: 22. 8% to $103. 00.

In this comparison, UFPI (1.

7% yield) pays a dividend. TREX does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, UFP Industries, Inc.

(UFPI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 92), 1. 7% yield, +230. 6% 10Y return). Both have compounded well over 10 years (UFPI: +230. 6%, TREX: +239. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (TREX (Industrials) and UFPI (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TREX is a small-cap quality compounder stock; UFPI is a small-cap deep-value stock. UFPI pays a dividend while TREX does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.