Natuzzi (NYSE:NTZ) versus Installed Building Products (NYSE:IBP) Financial Analysis

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

Volatility & Risk

Installed Building Products has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Natuzzi has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Institutional & Insider Ownership

99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 6.1% of Natuzzi shares are owned by institutional investors. 13.8% of Installed Building Products shares are owned by company insiders. Comparatively, 0.6% of Natuzzi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.97 billion	2.22	$265.40 million	$9.38	26.08
Natuzzi	$348.64 million	0.04	-$33.87 million	N/A	N/A

Installed Building Products has higher revenue and earnings than Natuzzi.

Analyst Ratings

This is a breakdown of current ratings for Installed Building Products and Natuzzi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	1	11	1	0	2.00
Natuzzi	1	0	0	0	1.00

Installed Building Products presently has a consensus price target of $248.82, indicating a potential upside of 1.71%. Given Installed Building Products’ stronger consensus rating and higher probable upside, equities analysts plainly believe Installed Building Products is more favorable than Natuzzi.

Profitability

This table compares Installed Building Products and Natuzzi’s 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%
Natuzzi	-9.71%	-76.40%	-10.54%

Summary

Installed Building Products beats Natuzzi on 12 of the 12 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 Natuzzi

Natuzzi S.p.A. engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores in the United States, Italy, China, Brazil, Spain, Mexico, Canada, Australia, Belgium, the United Arab Emirates, South Korea, Israel, Taiwan, the United Kingdom, and internationally. The company offers stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; home furnishing accessories, including coffee tables, lamps, rugs, and wall units; and home accessories, which include vases, mirrors, magazines racks, trays, and decorative objects. It also sells polyurethane foam and leather processing by-products. It operates Natuzzi Italia stores; Divani&Divani by Natuzzi stores; and Natuzzi Editions stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was incorporated in 1959 and is headquartered in Santeramo In Colle, Italy.