TopBuild (NYSE:BLD – Get Free Report) and Shimizu (OTCMKTS:SHMUY – Get Free Report) are both large-cap construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
95.7% of TopBuild shares are owned by institutional investors. 0.5% of TopBuild shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
TopBuild has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Shimizu has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| TopBuild | 8.95% | 23.53% | 8.61% |
| Shimizu | 6.11% | 5.77% | 2.16% |
Analyst Ratings
This is a breakdown of current ratings and price targets for TopBuild and Shimizu, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TopBuild | 0 | 9 | 5 | 1 | 2.47 |
| Shimizu | 0 | 0 | 0 | 0 | 0.00 |
TopBuild currently has a consensus target price of $466.77, indicating a potential upside of 9.64%. Given TopBuild’s stronger consensus rating and higher probable upside, research analysts plainly believe TopBuild is more favorable than Shimizu.
Earnings & Valuation
This table compares TopBuild and Shimizu”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TopBuild | $5.41 billion | 2.21 | $521.73 million | $17.80 | 23.92 |
| Shimizu | $13.67 billion | 0.81 | $835.68 million | $4.90 | 13.42 |
Shimizu has higher revenue and earnings than TopBuild. Shimizu is trading at a lower price-to-earnings ratio than TopBuild, indicating that it is currently the more affordable of the two stocks.
Summary
TopBuild beats Shimizu on 13 of the 15 factors compared between the two stocks.
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.
About Shimizu
Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.
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