Comparing Installed Building Products (IBP) and The Competition
Installed Building Products (NYSE: IBP) is one of 25 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it contrast to its competitors? We will compare Installed Building Products to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.
Volatility and Risk
Installed Building Products has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Installed Building Products’ competitors have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.
This table compares Installed Building Products and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Installed Building Products||4.11%||25.27%||7.46%|
|Installed Building Products Competitors||-23.94%||870.30%||5.72%|
Insider and Institutional Ownership
65.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 83.8% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 32.9% of Installed Building Products shares are owned by insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings for Installed Building Products and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Installed Building Products||0||0||4||0||3.00|
|Installed Building Products Competitors||98||540||832||23||2.52|
Installed Building Products presently has a consensus price target of $63.25, indicating a potential upside of 5.50%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.80%. Given Installed Building Products’ competitors higher possible upside, analysts clearly believe Installed Building Products has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares Installed Building Products and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Installed Building Products||$997.23 million||$121.83 million||46.12|
|Installed Building Products Competitors||$2.53 billion||$322.06 million||27.87|
Installed Building Products’ competitors have higher revenue and earnings than Installed Building Products. Installed Building Products is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Installed Building Products competitors beat Installed Building Products on 7 of the 13 factors compared.
About Installed Building Products
Installed Building Products, Inc. is a holding company. The Company is a residential insulation installer in the United States. As of December 31, 2016, the Company’s national platform included over 100 locations accessing customers in 48 continental states and the District of Columbia. The Company also installs complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors, which provides cross-selling opportunities to supplement the insulation installation business. The Company manages various aspects of the installation process for the customers, from the direct purchase and receipt of materials from national manufacturers, to supply of materials to job sites and quality installation. The Company’s customers include production and custom homebuilders, multi-family and commercial contractors, and homeowners.
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