Critical Survey: Boise Cascade, L.L.C. (BCC) and Deltic Timber Corporation (NYSE:DEL)

Deltic Timber Corporation (NYSE: DEL) and Boise Cascade, L.L.C. (NYSE:BCC) are both small-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Earnings & Valuation

This table compares Deltic Timber Corporation and Boise Cascade, L.L.C.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deltic Timber Corporation $220.60 million 3.70 $45.17 million $0.69 96.96
Boise Cascade, L.L.C. $4.10 billion 0.27 $168.84 million $1.20 24.00

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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Deltic Timber Corporation and Boise Cascade, L.L.C., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deltic Timber Corporation 1 4 4 0 2.33
Boise Cascade, L.L.C. 0 2 1 0 2.33

Deltic Timber Corporation currently has a consensus price target of $49.11, suggesting a potential downside of 26.59%. Boise Cascade, L.L.C. has a consensus price target of $30.67, suggesting a potential upside of 6.48%. Given Boise Cascade, L.L.C.’s higher probable upside, analysts plainly believe Boise Cascade, L.L.C. is more favorable than Deltic Timber Corporation.

Dividends

Deltic Timber Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Boise Cascade, L.L.C. does not pay a dividend. Deltic Timber Corporation pays out 58.0% of its earnings in the form of a dividend.

Volatility & Risk

Deltic Timber Corporation has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Boise Cascade, L.L.C. has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Institutional & Insider Ownership

80.6% of Deltic Timber Corporation shares are held by institutional investors. Comparatively, 97.7% of Boise Cascade, L.L.C. shares are held by institutional investors. 12.1% of Deltic Timber Corporation shares are held by company insiders. Comparatively, 1.0% of Boise Cascade, L.L.C. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Deltic Timber Corporation and Boise Cascade, L.L.C.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deltic Timber Corporation 3.82% 3.38% 1.52%
Boise Cascade, L.L.C. 1.13% 8.32% 3.17%

Summary

Boise Cascade, L.L.C. beats Deltic Timber Corporation on 9 of the 15 factors compared between the two stocks.

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.

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.

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