Knife River (NYSE:KNF) and TopBuild (NYSE:BLD) Head-To-Head Analysis

Knife River (NYSE:KNF) and TopBuild (NYSE:BLD) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Knife River has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, TopBuild has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Insider and Institutional Ownership

80.1% of Knife River shares are owned by institutional investors. Comparatively, 95.7% of TopBuild shares are owned by institutional investors. 0.3% of Knife River shares are owned by company insiders. Comparatively, 0.5% of TopBuild shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Knife River and TopBuild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knife River	4.99%	10.27%	4.41%
TopBuild	9.65%	25.66%	9.93%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Knife River and TopBuild, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knife River	1	3	6	0	2.50
TopBuild	1	6	8	1	2.56

Knife River currently has a consensus target price of $97.29, indicating a potential upside of 14.93%. TopBuild has a consensus target price of $440.21, indicating a potential upside of 13.33%. Given Knife River’s higher probable upside, equities analysts clearly believe Knife River is more favorable than TopBuild.

Earnings & Valuation

This table compares Knife River and TopBuild”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knife River	$3.15 billion	1.53	$157.07 million	$2.76	30.67
TopBuild	$5.41 billion	2.02	$521.73 million	$18.30	21.23

TopBuild has higher revenue and earnings than Knife River. TopBuild is trading at a lower price-to-earnings ratio than Knife River, indicating that it is currently the more affordable of the two stocks.

Summary

TopBuild beats Knife River on 13 of the 15 factors compared between the two stocks.

About Knife River

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.

About TopBuild

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products. The company also offers insulation installation services for fiberglass batts and rolls, blown-in loose fill fiberglass, polyurethane spray foam, and blown-in loose fill cellulose applications. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates installation branches and distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.