Financial Survey: James Hardie Industries (NYSE:JHX) versus Inno (NASDAQ:INHD)

James Hardie Industries (NYSE:JHX) and Inno (NASDAQ:INHD) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares James Hardie Industries and Inno’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
James Hardie Industries	2.70%	13.52%	5.81%
Inno	-158.32%	-24.17%	-23.51%

Institutional & Insider Ownership

8.0% of James Hardie Industries shares are held by institutional investors. Comparatively, 0.2% of Inno shares are held by institutional investors. 0.1% of Inno shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

James Hardie Industries has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Inno has a beta of -0.58, meaning that its share price is 158% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for James Hardie Industries and Inno, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
James Hardie Industries	0	4	10	0	2.71
Inno	1	0	0	0	1.00

James Hardie Industries presently has a consensus target price of $26.63, suggesting a potential upside of 43.26%. Given James Hardie Industries’ stronger consensus rating and higher possible upside, analysts clearly believe James Hardie Industries is more favorable than Inno.

Valuation & Earnings

This table compares James Hardie Industries and Inno”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
James Hardie Industries	$4.40 billion	1.81	$424.00 million	$0.27	68.83
Inno	$4.11 million	2.13	-$7.08 million	($14.81)	-0.07

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

Summary

James Hardie Industries beats Inno on 12 of the 14 factors compared between the two stocks.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.