Financial Analysis: Installed Building Products (NYSE:IBP) vs. Bellway (OTCMKTS:BLWYY)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Installed Building Products and Bellway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	2	12	1	0	1.93
Bellway	0	4	0	0	2.00

Installed Building Products currently has a consensus price target of $247.67, suggesting a potential upside of 15.70%. Given Installed Building Products’ higher possible upside, analysts plainly believe Installed Building Products is more favorable than Bellway.

Profitability

This table compares Installed Building Products and Bellway’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%
Bellway	N/A	N/A	N/A

Earnings and Valuation

This table compares Installed Building Products and Bellway”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	1.94	$265.40 million	$9.38	22.82
Bellway	$3.62 billion	0.99	$204.69 million	N/A	N/A

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

Dividends

Installed Building Products pays an annual dividend of $1.56 per share and has a dividend yield of 0.7%. Bellway pays an annual dividend of $1.18 per share and has a dividend yield of 3.8%. Installed Building Products pays out 16.6% of its earnings in the form of a dividend.

Risk and Volatility

Installed Building Products has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Bellway has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Insider & Institutional Ownership

99.6% of Installed Building Products shares are held by institutional investors. 13.8% of Installed Building Products shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Installed Building Products beats Bellway on 10 of the 14 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 Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway and Ashberry brands. Bellway p.l.c. was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.