Latham Group (NASDAQ:SWIM) versus Installed Building Products (NYSE:IBP) Financial Survey

Latham Group (NASDAQ:SWIM) and Installed Building Products (NYSE:IBP) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Latham Group	-2.54%	-3.35%	-1.61%
Installed Building Products	8.45%	60.27%	13.91%

Analyst Ratings

This is a breakdown of recent ratings for Latham Group and Installed Building Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	0	3	0	2.20
Installed Building Products	2	11	2	0	2.00

Latham Group currently has a consensus price target of $7.95, suggesting a potential upside of 7.43%. Installed Building Products has a consensus price target of $217.36, suggesting a potential downside of 10.08%. Given Latham Group’s stronger consensus rating and higher possible upside, analysts clearly believe Latham Group is more favorable than Installed Building Products.

Institutional and Insider Ownership

84.0% of Latham Group shares are owned by institutional investors. Comparatively, 99.6% of Installed Building Products shares are owned by institutional investors. 8.6% of Latham Group shares are owned by company insiders. Comparatively, 16.2% of Installed Building Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Latham Group and Installed Building Products”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$508.52 million	1.70	-$17.86 million	($0.12)	-61.67
Installed Building Products	$2.94 billion	2.25	$256.60 million	$8.99	26.89

Installed Building Products has higher revenue and earnings than Latham Group. Latham Group 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.

Volatility & Risk

Latham Group has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Summary

Installed Building Products beats Latham Group on 11 of the 14 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

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.