Contrasting Everus Construction Group (NYSE:ECG) and Installed Building Products (NYSE:IBP)

Installed Building Products (NYSE:IBP) and Everus Construction Group (NYSE:ECG) are both mid-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Installed Building Products and Everus Construction Group’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%
Everus Construction Group	5.18%	36.74%	12.59%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.94 billion	2.54	$256.60 million	$9.29	29.64
Everus Construction Group	$2.85 billion	1.58	$143.42 million	$3.53	25.02

Installed Building Products has higher revenue and earnings than Everus Construction Group. Everus Construction 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.

Institutional and Insider 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. Comparatively, 0.2% of Everus Construction Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Installed Building Products has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Everus Construction Group has a beta of 3.84, meaning that its stock price is 284% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Installed Building Products and Everus Construction Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	2	9	2	1	2.14
Everus Construction Group	0	2	2	1	2.80

Installed Building Products presently has a consensus price target of $226.20, indicating a potential downside of 17.85%. Everus Construction Group has a consensus price target of $100.33, indicating a potential upside of 13.59%. Given Everus Construction Group’s stronger consensus rating and higher probable upside, analysts plainly believe Everus Construction Group is more favorable than Installed Building Products.

Summary

Installed Building Products beats Everus Construction Group on 10 of the 13 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 Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.