Installed Building Products (NYSE:IBP – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Installed Building Products and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Installed Building Products | 8.46% | 42.12% | 13.20% |
| Legacy Housing | 28.56% | 9.53% | 8.74% |
Earnings & Valuation
This table compares Installed Building Products and Legacy Housing”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Installed Building Products | $2.97 billion | 1.77 | $265.40 million | $9.29 | 21.26 |
| Legacy Housing | $164.57 million | 4.07 | $41.81 million | $2.17 | 13.00 |
Installed Building Products has higher revenue and earnings than Legacy Housing. Legacy Housing is trading at a lower price-to-earnings ratio than Installed Building Products, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Installed Building Products has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Insider & Institutional Ownership
99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 89.3% of Legacy Housing shares are owned by institutional investors. 13.8% of Installed Building Products shares are owned by insiders. Comparatively, 30.1% of Legacy Housing shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Installed Building Products and Legacy Housing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Installed Building Products | 1 | 10 | 2 | 0 | 2.08 |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
Installed Building Products presently has a consensus target price of $247.55, suggesting a potential upside of 25.33%. Legacy Housing has a consensus target price of $21.00, suggesting a potential downside of 25.53%. Given Installed Building Products’ stronger consensus rating and higher probable upside, equities analysts clearly believe Installed Building Products is more favorable than Legacy Housing.
Summary
Installed Building Products beats Legacy Housing on 11 of the 14 factors compared between the two stocks.
About Installed Building Products
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the United States. It operates through Installation, Distribution, and Manufacturing operation segments. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. Further, it distributes spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation, as well as accessories and equipment used in the insulation installation process; and manufactures cellulose insulation and specialty industrial fibers. It serves homebuilders, multi-family and commercial and agricultural construction firms, individual homeowners, and repair and remodeling contractors. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.
About Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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