Installed Building Products (NYSE:IBP) versus Compagnie de Saint-Gobain (OTCMKTS:CODYY) Critical Comparison

Installed Building Products (NYSE:IBP) and Compagnie de Saint-Gobain (OTCMKTS:CODYY) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Dividends

Installed Building Products pays an annual dividend of $1.56 per share and has a dividend yield of 0.7%. Compagnie de Saint-Gobain pays an annual dividend of $0.31 per share and has a dividend yield of 1.8%. Installed Building Products pays out 16.6% of its earnings in the form of a dividend.

Profitability

This table compares Installed Building Products and Compagnie de Saint-Gobain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Installed Building Products	8.65%	42.28%	13.74%
Compagnie de Saint-Gobain	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Installed Building Products and Compagnie de Saint-Gobain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	2	12	1	0	1.93
Compagnie de Saint-Gobain	1	2	1	1	2.40

Installed Building Products currently has a consensus target price of $247.67, indicating a potential upside of 14.79%. Given Installed Building Products’ higher probable upside, analysts plainly believe Installed Building Products is more favorable than Compagnie de Saint-Gobain.

Institutional and Insider Ownership

99.6% of Installed Building Products shares are owned by institutional investors. 13.8% of Installed Building Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Installed Building Products has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Compagnie de Saint-Gobain has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares Installed Building Products and Compagnie de Saint-Gobain”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	$2.95 billion	1.97	$265.40 million	$9.38	23.00
Compagnie de Saint-Gobain	$52.58 billion	0.83	$3.26 billion	N/A	N/A

Compagnie de Saint-Gobain has higher revenue and earnings than Installed Building Products.

Summary

Installed Building Products beats Compagnie de Saint-Gobain on 8 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 Compagnie de Saint-Gobain

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands. It also provides mortars and construction chemicals under the Weber, Chryso, and GCP brands; exterior products comprising asphalt and composite shingles, solar roofing solutions, roll roofing systems, and accessories under the CertainTeed and Brasilit brands; and pipes under the PAM brand, as well as abrasives, adhesives, sealants, tapes, composites, and films. In addition, the company provides interior and exterior systems for construction and housing sectors; ceramics under the SEFPRO brand; polymer shakes and shingle, and insulation cladding solutions; and barriers, terraces, and balustrades. Further, it distributes heavy building materials; plumbing, heating, ventilation, and sanitaryware products; timber and byproducts; bathrooms and kitchens; and site equipment, PPEs, and tools. The company was founded in 1665 and is headquartered in Courbevoie, France.