Construction Partners (NASDAQ:ROAD – Get Free Report) and Inno (NASDAQ:INHD – Get Free Report) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Earnings and Valuation
This table compares Construction Partners and Inno”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Construction Partners | $3.26 billion | 2.09 | $101.78 million | $2.28 | 52.72 |
| Inno | $2.85 million | 34.92 | -$7.08 million | ($149.09) | -0.26 |
Profitability
This table compares Construction Partners and Inno’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Construction Partners | 3.90% | 15.22% | 4.36% |
| Inno | -86.76% | -13.08% | -12.84% |
Risk & Volatility
Construction Partners has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Inno has a beta of -2.8, meaning that its share price is 380% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Construction Partners and Inno, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Construction Partners | 0 | 4 | 3 | 1 | 2.63 |
| Inno | 1 | 0 | 0 | 0 | 1.00 |
Construction Partners presently has a consensus target price of $136.50, indicating a potential upside of 13.55%. Given Construction Partners’ stronger consensus rating and higher probable upside, research analysts plainly believe Construction Partners is more favorable than Inno.
Institutional and Insider Ownership
94.8% of Construction Partners shares are held by institutional investors. Comparatively, 0.2% of Inno shares are held by institutional investors. 15.7% of Construction Partners shares are held by insiders. Comparatively, 0.1% of Inno shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Construction Partners beats Inno on 14 of the 15 factors compared between the two stocks.
About Construction Partners
Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.
About Inno
Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.
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