Head-To-Head Survey: Inno (NASDAQ:INHD) & Construction Partners (NASDAQ:ROAD)

Inno (NASDAQ:INHD) and Construction Partners (NASDAQ:ROAD) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Earnings and Valuation

This table compares Inno and Construction Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inno	$2.85 million	34.92	-$7.08 million	($149.09)	-0.26
Construction Partners	$3.26 billion	2.09	$101.78 million	$2.28	52.72

Construction Partners has higher revenue and earnings than Inno. Inno is trading at a lower price-to-earnings ratio than Construction Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Inno and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inno	-86.76%	-13.08%	-12.84%
Construction Partners	3.90%	15.22%	4.36%

Volatility & Risk

Inno has a beta of -2.8, suggesting that its stock price is 380% less volatile than the S&P 500. Comparatively, Construction Partners has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Inno and Construction Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inno	1	0	0	0	1.00
Construction Partners	0	4	3	1	2.63

Construction Partners 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, analysts plainly believe Construction Partners is more favorable than Inno.

Institutional & Insider Ownership

0.2% of Inno shares are owned by institutional investors. Comparatively, 94.8% of Construction Partners shares are owned by institutional investors. 0.1% of Inno shares are owned by company insiders. Comparatively, 15.7% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments 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 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.

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.