IBP vs. MTH, FLR, CHX, AZEK, LPX, TMHC, AAON, SUM, ALTR, and SSD
Should you be buying Installed Building Products stock or one of its competitors? The main competitors of Installed Building Products include Meritage Homes (MTH), Fluor (FLR), ChampionX (CHX), AZEK (AZEK), Louisiana-Pacific (LPX), Taylor Morrison Home (TMHC), AAON (AAON), Summit Materials (SUM), Altair Engineering (ALTR), and Simpson Manufacturing (SSD). These companies are all part of the "construction" sector.
Installed Building Products (NYSE:IBP) and Meritage Homes (NYSE:MTH) are both mid-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, media sentiment, community ranking, risk, institutional ownership, earnings, dividends and analyst recommendations.
Installed Building Products has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Meritage Homes has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 98.4% of Meritage Homes shares are owned by institutional investors. 16.5% of Installed Building Products shares are owned by company insiders. Comparatively, 2.0% of Meritage Homes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Meritage Homes received 97 more outperform votes than Installed Building Products when rated by MarketBeat users. However, 64.73% of users gave Installed Building Products an outperform vote while only 55.40% of users gave Meritage Homes an outperform vote.
Installed Building Products pays an annual dividend of $1.40 per share and has a dividend yield of 0.7%. Meritage Homes pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. Installed Building Products pays out 15.8% of its earnings in the form of a dividend. Meritage Homes pays out 14.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Meritage Homes is clearly the better dividend stock, given its higher yield and lower payout ratio.
Meritage Homes has a net margin of 12.54% compared to Installed Building Products' net margin of 8.90%. Installed Building Products' return on equity of 45.41% beat Meritage Homes' return on equity.
In the previous week, Installed Building Products had 5 more articles in the media than Meritage Homes. MarketBeat recorded 17 mentions for Installed Building Products and 12 mentions for Meritage Homes. Meritage Homes' average media sentiment score of 0.76 beat Installed Building Products' score of 0.52 indicating that Meritage Homes is being referred to more favorably in the news media.
Installed Building Products presently has a consensus target price of $229.30, indicating a potential upside of 8.25%. Meritage Homes has a consensus target price of $178.25, indicating a potential downside of 2.60%. Given Installed Building Products' stronger consensus rating and higher possible upside, analysts clearly believe Installed Building Products is more favorable than Meritage Homes.
Meritage Homes has higher revenue and earnings than Installed Building Products. Meritage Homes 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.
Summary
Installed Building Products beats Meritage Homes on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding IBP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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