Head-To-Head Survey: Grafton Group (OTCMKTS:GROUF) and Installed Building Products (NYSE:IBP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grafton Group	N/A	N/A	N/A
Installed Building Products	8.65%	42.28%	13.74%

Insider & Institutional Ownership

8.2% of Grafton Group shares are owned by institutional investors. Comparatively, 99.6% of Installed Building Products 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Grafton Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Earnings and Valuation

This table compares Grafton Group and Installed Building Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grafton Group	$3.32 billion	0.64	$180.09 million	N/A	N/A
Installed Building Products	$2.97 billion	1.97	$265.40 million	$9.38	23.20

Installed Building Products has lower revenue, but higher earnings than Grafton Group.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grafton Group	0	0	1	0	3.00
Installed Building Products	2	12	1	0	1.93

Installed Building Products has a consensus price target of $247.67, suggesting a potential upside of 13.81%. Given Installed Building Products’ higher possible upside, analysts clearly believe Installed Building Products is more favorable than Grafton Group.

Summary

Installed Building Products beats Grafton Group on 9 of the 11 factors compared between the two stocks.

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.

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.