Contrasting CRH (NYSE:CRH) & Installed Building Products (NYSE:IBP)

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

Institutional and Insider Ownership

62.5% of CRH shares are held by institutional investors. Comparatively, 99.6% of Installed Building Products shares are held by institutional investors. 0.1% of CRH shares are held by insiders. Comparatively, 16.2% 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 company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CRH	9.09%	15.68%	6.83%
Installed Building Products	8.45%	60.27%	13.91%

Dividends

CRH pays an annual dividend of $1.11 per share and has a dividend yield of 1.0%. Installed Building Products pays an annual dividend of $1.48 per share and has a dividend yield of 0.6%. CRH pays out 22.1% of its earnings in the form of a dividend. Installed Building Products pays out 15.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CRH	$36.90 billion	2.07	$3.46 billion	$5.02	22.59
Installed Building Products	$2.97 billion	2.42	$256.60 million	$9.29	28.56

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

Risk & Volatility

CRH has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for CRH and Installed Building Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CRH	0	2	12	2	3.00
Installed Building Products	3	11	2	0	1.94

CRH currently has a consensus price target of $129.54, indicating a potential upside of 14.24%. Installed Building Products has a consensus price target of $224.45, indicating a potential downside of 15.41%. Given CRH’s stronger consensus rating and higher probable upside, research analysts clearly believe CRH is more favorable than Installed Building Products.

Summary

Installed Building Products beats CRH on 9 of the 17 factors compared between the two stocks.

About CRH

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.

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.