Comparing Shimizu (OTCMKTS:SHMUY) & Installed Building Products (NYSE:IBP)

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

Dividends

Installed Building Products pays an annual dividend of $1.48 per share and has a dividend yield of 0.6%. Shimizu pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. Installed Building Products pays out 15.9% of its earnings in the form of a dividend. Shimizu pays out 19.3% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Installed Building Products	8.60%	62.74%	14.23%
Shimizu	5.05%	3.76%	1.40%

Volatility & Risk

Installed Building Products has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Shimizu has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Installed Building Products and Shimizu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	2	8	3	1	2.21
Shimizu	0	0	0	0	0.00

Installed Building Products currently has a consensus price target of $226.20, suggesting a potential downside of 15.51%. Given Installed Building Products’ stronger consensus rating and higher probable upside, research analysts clearly believe Installed Building Products is more favorable than Shimizu.

Insider and Institutional Ownership

99.6% of Installed Building Products shares are owned by institutional investors. 16.2% of Installed Building Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Installed Building Products and Shimizu”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	$2.94 billion	2.47	$256.60 million	$9.29	28.82
Shimizu	$12.77 billion	0.64	$435.70 million	$3.94	11.08

Shimizu has higher revenue and earnings than Installed Building Products. Shimizu 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.

Summary

Installed Building Products beats Shimizu on 14 of the 17 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 Shimizu

Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.