Installed Building Products (NYSE:IBP) & Grafton Group (OTCMKTS:GROUF) Financial Analysis

Installed Building Products (NYSE:IBP) and Grafton Group (OTCMKTS:GROUF) are both mid-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Installed Building Products and Grafton Group, as provided by MarketBeat.com.

	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 target price of $247.67, suggesting a potential upside of 19.45%. Given Installed Building Products’ higher possible upside, analysts plainly believe Installed Building Products is more favorable than Grafton Group.

Risk & Volatility

Installed Building Products has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.34, indicating that its stock 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

Earnings & Valuation

This table compares Installed Building Products and Grafton Group”s gross 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	1.88	$265.40 million	$9.38	22.10
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.

Insider and Institutional Ownership

99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 8.2% of Grafton Group shares are owned by institutional investors. 13.8% of Installed Building Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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.