UFPI vs BLDR

For growth investors, UFP Industries, Inc.

(UFPI) is the stronger pick with -5. 0% revenue growth year-over-year, versus -7. 4% for Builders FirstSource, Inc. (BLDR). 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 Builders FirstSource, Inc. at 20. 4x. On forward P/E, Builders FirstSource, Inc. is actually cheaper at 14. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Builders FirstSource, Inc. wins at 1. 78x versus UFP Industries, Inc. 's 3. 49x — a reasonable growth-adjusted valuation.

Over the past 5 years, Builders FirstSource, Inc.

(BLDR) delivered a total return of +51. 8%, compared to +1. 5% for UFP Industries, Inc. (UFPI). Over 10 years, the gap is even starker: BLDR returned +614. 8% 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 Builders FirstSource, Inc. 's 1. 65β — meaning BLDR is approximately 79% 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 130% for Builders FirstSource, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), UFP Industries, Inc.

(UFPI) is pulling ahead at -5. 0% versus -7. 4% for Builders FirstSource, Inc. (BLDR). On earnings-per-share growth, the picture is similar: UFP Industries, Inc. grew EPS -26. 1% year-over-year, compared to -57. 1% for Builders FirstSource, Inc.. Over a 3-year CAGR, BLDR leads at -12. 6% 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.

UFP Industries, Inc.

(UFPI) is the more profitable company, earning 4. 7% net margin versus 2. 9% for Builders FirstSource, Inc. — meaning it keeps 4. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UFPI leads at 5. 8% versus 5. 2% for BLDR. At the gross margin level — before operating expenses — BLDR leads at 29. 0%, 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, Builders FirstSource, Inc. (BLDR) is the more undervalued stock at a PEG of 1. 78x versus UFP Industries, Inc. 's 3. 49x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Builders FirstSource, Inc. (BLDR) trades at 14. 1x forward P/E versus 15. 9x for UFP Industries, Inc. — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BLDR: 38. 3% to $109. 92.

In this comparison, UFPI (1.

7% yield) pays a dividend. BLDR 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). Builders FirstSource, Inc. (BLDR) carries a higher beta of 1. 65 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (UFPI: +230. 6%, BLDR: +614. 8%), 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 (UFPI (Basic Materials) and BLDR (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: UFPI is a small-cap deep-value stock; BLDR is a small-cap quality compounder stock. UFPI pays a dividend while BLDR 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.