Analyzing Installed Building Products (IBP) and Its Peers
Installed Building Products (NYSE: IBP) is one of 5 publicly-traded companies in the “Building Contractors” industry, but how does it weigh in compared to its peers? We will compare Installed Building Products to similar businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, profitability and dividends.
Volatility & Risk
Installed Building Products has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Installed Building Products’ peers have a beta of 0.74, meaning that their average share price is 27% less volatile than the S&P 500.
This table compares Installed Building Products and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Installed Building Products||4.11%||25.27%||7.46%|
|Installed Building Products Competitors||2.08%||9.10%||3.72%|
This is a breakdown of recent ratings and recommmendations for Installed Building Products and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Installed Building Products||0||1||4||0||2.80|
|Installed Building Products Competitors||10||36||58||3||2.50|
Installed Building Products currently has a consensus target price of $63.25, indicating a potential downside of 5.53%. As a group, “Building Contractors” companies have a potential upside of 16.92%. Given Installed Building Products’ peers higher probable upside, analysts clearly believe Installed Building Products has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Installed Building Products and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Installed Building Products||$997.23 million||$121.83 million||51.50|
|Installed Building Products Competitors||$591.64 million||$57.56 million||44.31|
Installed Building Products has higher revenue and earnings than its peers. Installed Building Products is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
65.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 78.8% of shares of all “Building Contractors” companies are owned by institutional investors. 32.9% of Installed Building Products shares are owned by company insiders. Comparatively, 17.1% of shares of all “Building Contractors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Installed Building Products beats its peers on 10 of the 13 factors compared.
Installed Building Products Company Profile
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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