Installed Building Products (NYSE:IBP) vs. Sonos (NASDAQ:SONO) Head-To-Head Comparison

Installed Building Products (NYSE:IBP) and Sonos (NASDAQ:SONO) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Valuation & Earnings

This table compares Installed Building Products and Sonos”s top-line 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	2.11	$265.40 million	$9.29	25.36
Sonos	$1.44 billion	1.31	-$61.14 million	$0.45	35.51

Installed Building Products has higher revenue and earnings than Sonos. Installed Building Products is trading at a lower price-to-earnings ratio than Sonos, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.6% of Installed Building Products shares are held by institutional investors. Comparatively, 85.8% of Sonos shares are held by institutional investors. 13.8% of Installed Building Products shares are held by insiders. Comparatively, 1.3% of Sonos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	1	10	1	0	2.00
Sonos	0	3	2	0	2.40

Installed Building Products currently has a consensus price target of $249.30, suggesting a potential upside of 5.81%. Sonos has a consensus price target of $20.00, suggesting a potential upside of 25.16%. Given Sonos’ stronger consensus rating and higher probable upside, analysts clearly believe Sonos is more favorable than Installed Building Products.

Volatility & Risk

Installed Building Products has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Sonos has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.

Profitability

This table compares Installed Building Products and Sonos’ 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%
Sonos	3.82%	19.10%	8.67%

Summary

Installed Building Products beats Sonos on 9 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 Sonos

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.