Cavco Industries (NASDAQ:CVCO) & Installed Building Products (NYSE:IBP) Financial Comparison

Cavco Industries (NASDAQ:CVCO) and Installed Building Products (NYSE:IBP) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 99.6% of Installed Building Products shares are held by institutional investors. 1.7% of Cavco Industries shares are held by insiders. Comparatively, 13.8% of Installed Building Products 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.68%	16.60%	12.05%
Installed Building Products	7.87%	39.86%	12.22%

Earnings and Valuation

This table compares Cavco Industries and Installed Building Products”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.24 billion	2.16	$190.55 million	$23.60	26.93
Installed Building Products	$2.99 billion	1.96	$265.40 million	$8.79	25.14

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

Volatility & Risk

Cavco Industries has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Cavco Industries and Installed Building Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	0	2	4	1	2.86
Installed Building Products	2	11	1	0	1.93

Cavco Industries presently has a consensus price target of $695.00, indicating a potential upside of 9.36%. Installed Building Products has a consensus price target of $229.83, indicating a potential upside of 3.99%. Given Cavco Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Cavco Industries is more favorable than Installed Building Products.

Summary

Installed Building Products beats Cavco Industries on 8 of the 15 factors compared between the two stocks.

About Cavco Industries

Cavco Industries, Inc. designs and manufactures factory-built housing, including manufactured and modular homes, park model recreational vehicles, and related structures. Its homes are sold under a range of brand names and are designed for uses that include permanent residences, vacation homes, and workforce housing. Founded in 1965 and headquartered in Phoenix, Arizona, Cavco serves customers across the United States through a network of independent retailers, company-owned retail locations, and other housing channels.

About Installed Building Products

Installed Building Products, Inc. is a U.S. building-products installation company headquartered in Columbus, Ohio. Founded in 1977, the company serves residential builders, commercial contractors, and homeowners through a network of local operating businesses across the United States. The company’s core business is installing insulation in new construction and existing buildings. Its offerings include fiberglass, cellulose, and spray-foam insulation, along with related weatherization services. Installed Building Products also installs complementary products such as garage doors, rain gutters, shower doors, and closet shelving.