Installed Building Products (NYSE:IBP – Get Free Report) and Grafton Group (OTCMKTS:GROUF – Get Free Report) are both mid-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Risk & Volatility
Installed Building Products has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.
Profitability
This table compares Installed Building Products and Grafton Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Installed Building Products | 8.65% | 42.28% | 13.74% |
| Grafton Group | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Installed Building Products | 2 | 12 | 1 | 0 | 1.93 |
| Grafton Group | 0 | 0 | 1 | 0 | 3.00 |
Installed Building Products presently has a consensus price target of $247.67, indicating a potential upside of 13.58%. Given Installed Building Products’ higher possible upside, research analysts clearly believe Installed Building Products is more favorable than Grafton Group.
Insider and Institutional Ownership
99.6% of Installed Building Products shares are held by institutional investors. Comparatively, 8.2% of Grafton Group shares are held by institutional investors. 13.8% of Installed Building Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Installed Building Products and Grafton Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Installed Building Products | $2.97 billion | 1.98 | $265.40 million | $9.38 | 23.25 |
| Grafton Group | $3.32 billion | 0.64 | $180.09 million | N/A | N/A |
Installed Building Products has higher earnings, but lower revenue than Grafton Group.
Summary
Installed Building Products beats Grafton Group on 9 of the 11 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 Grafton Group
Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.
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