Comparing Natuzzi (NYSE:NTZ) and Installed Building Products (NYSE:IBP)

Installed Building Products (NYSE:IBP) and Natuzzi (NYSE:NTZ) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

99.6% of Installed Building Products shares are held by institutional investors. Comparatively, 6.1% of Natuzzi shares are held by institutional investors. 13.8% of Installed Building Products shares are held by insiders. Comparatively, 0.6% of Natuzzi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Installed Building Products and Natuzzi”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.97 billion	2.22	$265.40 million	$9.38	26.08
Natuzzi	$348.64 million	0.04	-$33.87 million	N/A	N/A

Installed Building Products has higher revenue and earnings than Natuzzi.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Installed Building Products	8.46%	42.12%	13.20%
Natuzzi	-9.71%	-76.40%	-10.54%

Analyst Recommendations

This is a summary of current recommendations for Installed Building Products and Natuzzi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	1	11	1	0	2.00
Natuzzi	1	0	0	0	1.00

Installed Building Products presently has a consensus price target of $248.82, indicating a potential upside of 1.71%. Given Installed Building Products’ stronger consensus rating and higher possible upside, research analysts clearly believe Installed Building Products is more favorable than Natuzzi.

Risk & Volatility

Installed Building Products has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Natuzzi has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Summary

Installed Building Products beats Natuzzi on 12 of the 12 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 Natuzzi

Natuzzi S.p.A. engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores in the United States, Italy, China, Brazil, Spain, Mexico, Canada, Australia, Belgium, the United Arab Emirates, South Korea, Israel, Taiwan, the United Kingdom, and internationally. The company offers stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; home furnishing accessories, including coffee tables, lamps, rugs, and wall units; and home accessories, which include vases, mirrors, magazines racks, trays, and decorative objects. It also sells polyurethane foam and leather processing by-products. It operates Natuzzi Italia stores; Divani&Divani by Natuzzi stores; and Natuzzi Editions stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was incorporated in 1959 and is headquartered in Santeramo In Colle, Italy.