In this article we discuss the 5 building materials companies in USA. If you want to read our detailed analysis of these companies, go directly to the Top 15 Building Materials Companies in USA.
5. Builders FirstSource, Inc. (NASDAQ: BLDR)
Market Capitalization: $8,840,000,000
Number of Hedge Fund Holders: 48
Builders FirstSource, Inc. manufactures and supplies building materials. Builders FirstSource, Inc. has its headquarters in Dallas, Texas. The company is popular as it is the largest supplier of most construction-related products and value-added construction services in the US. The company has over 15,000 employees in 550 locations and 40 states across the United States. The company provides materials for new construction in residential projects, repairing projects, and remodeling projects. Builders FirstSource, Inc. was established in the year 1998. As of June 2021, Builders FirstSource has a market capitalization of $8.84 billion.
GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned Builders FirstSource, Inc. (NASDAQ: BLDR). Here is what the fund said:
“Builders FirstSource climbed into the top five the old-fashioned way – good results, an attractive merger announcement, and a higher stock price. To paraphrase my January 2020 letter when explaining our thesis; “Builders is the nation’s largest supplier of structural building products and services to the professional market for new residential construction and repair and remodeling. This is a consolidating, cash generative industry starting to favor the biggest players, and with minimal real disintermediation risks. However, they do operate in a cyclical industry.” In August, Builders announced a merger with its main public competitor BMC Stock Holdings which will further consolidate the industry, solve a succession issue at Builders and lower its leverage – at a fair price. The combined company has near-term potential free cash flow of over $3/share – though volatile lumber prices will always cause some noise – and much higher long-term free cash flow potential. Chairman of the Board Paul Levy has been working on this deal for a while – we send him our regards and thanks.”
4. RPM International Inc. (NYSE: RPM)
Market Capitalization: $11,290,000,000
Number of Hedge Fund Holders: 20
RPM International Inc. owns multiple subsidiaries that deal with the manufacturing and marketing of sealants, specialty coatings, and construction-related materials. The brands possessed by the company include Tremco, Carboline, Universal Sealants, Stonhard, RPM/Belgium, Day-Glo, Euco, and Dryvit. The company specializes in products for professional builders and construction workers as well as for do-it-yourselfers. Zinsser, Rust-Oleum, DAP, Varathane, and Testors are among the consumer brands owned by RPM International Inc. The products are related to construction, repairs, home maintenance, and improvement.
RPM International Inc. employs 15,000 individuals and owns more than 120 manufacturing facilities across the globe. The products of RPM International Inc. are sold in over 170 countries. Moreover, the shares of RPM International Inc. are under the ownership of over 700 institutions and more than 138,000 individual investors. The company is 4th on the list of top building material companies in USA.
3. Quanta Services, Inc. (NYSE: PWR)
Market Capitalization: $12,962,000,000
Number of Hedge Fund Holders: 33
Quanta Services, Inc. provides specialized contracting services for electric power, oil and gas, and communications industries. The professionals of Quanta Services, Inc. are trained in the planning, design, installation, program management, maintenance, up-gradation, and repair of most types of network infrastructure. The company employs over 40,000 people and is headquartered in Houston, Texas, although it provides its services across the United States, Canada, and even Australia.
The company is segmented into two divisions according to the industries it operates in. The Electric Power Infrastructure Services, as the name suggests, offers network solutions to players in the power industry. The second division is named Oil and Gas Infrastructure Service, and it offers network solutions to institutions that deal with the development and transportation of natural gas, oil, and other pipeline products. The company is 3rd on the list of top building material companies in USA.
2. Martin Marietta Materials, Inc. (NYSE: MLM)
Market Capitalization: $21,930,000,000
Number of Hedge Fund Holders: 41
Martin Marietta Materials, Inc. supplies aggregates and heavy building materials for professional construction workers. Specifically, the company provides the materials used in the building of roads, sidewalks, and foundations of buildings. Its presence is in 26 states as well as the Caribbean and Canada. Additionally, its Magnesia Specialties business offers a wide variety of products made of magnesium hydroxide, dolomitic lime, and magnesium oxide. Martin Marietta Materials, Inc. is 2nd on the list of top building material companies in USA.
First Eagle Investment Management, in its Q1 2021 investor letter, highlighted a few stocks and Martin Marietta Materials Inc (NYSE:MLM) is one of them. Here is what First Eagle said:
“Though Martin Marietta stock declined in the quarter due to concerns about the near-term effect of the coronavirus pandemic on construction and demand for aggregates and cement, we believe the impact will likely be temporal and not as bad as the market fears. Notably, the consolidation of the aggregates market has led to rational pricing in most of the regions in which Martin Marietta operates.”
1. Vulcan Materials Company (NYSE: VMC)
Market Capitalization: $23,820,000,000
Number of Hedge Fund Holders: 48
Vulcan Materials Company, based in Birmingham, Alabama, produces, distributes, and markets construction materials such as gravel, crushed stone, and sand. The company is the largest producer of construction materials in the US and employs nearly 7,000 people in the 300 locations that it owns. Vulcan Materials Company distributes its products to 19 states as well as Columbia and Mexico. As of June 2021, Vulcan Materials Company had a market cap of $23.82 billion, making it the first on the list of top 15 building material companies in the USA.
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