Apogee Enterprises (NASDAQ: APOG) and Installed Building Products (NYSE:IBP) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

Apogee Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.2%. Installed Building Products does not pay a dividend. Apogee Enterprises pays out 19.2% of its earnings in the form of a dividend.

Profitability

This table compares Apogee Enterprises and Installed Building Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apogee Enterprises 7.39% 18.59% 11.53%
Installed Building Products 4.11% 25.27% 7.46%

Risk and Volatility

Apogee Enterprises has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

65.6% of Installed Building Products shares are held by institutional investors. 3.7% of Apogee Enterprises shares are held by insiders. Comparatively, 32.9% of Installed Building Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Apogee Enterprises and Installed Building Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apogee Enterprises $1.14 billion 1.15 $159.39 million $2.91 15.58
Installed Building Products $997.23 million 1.84 $121.83 million $1.30 44.23

Apogee Enterprises has higher revenue and earnings than Installed Building Products. Apogee Enterprises 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Apogee Enterprises and Installed Building Products, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apogee Enterprises 0 0 3 0 3.00
Installed Building Products 0 0 4 0 3.00

Apogee Enterprises presently has a consensus target price of $63.33, suggesting a potential upside of 39.72%. Installed Building Products has a consensus target price of $63.25, suggesting a potential upside of 10.00%. Given Apogee Enterprises’ higher probable upside, research analysts clearly believe Apogee Enterprises is more favorable than Installed Building Products.

Summary

Apogee Enterprises beats Installed Building Products on 8 of the 15 factors compared between the two stocks.

About Apogee Enterprises

Apogee Enterprises, Inc. is engaged in the design and development of glass solutions for enclosing commercial buildings and framing art. The Company operates through four segments: Architectural Glass, Architectural Services, Architectural Framing Systems and Large-Scale Optical Technologies (LSO). The Architectural Glass segment fabricates coated glass used in customized window and wall systems. The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems. The Large-Scale Optical Technologies segment manufactures glass and acrylic products for the custom picture framing and fine art markets.

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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