Analyzing Cavco Industries (NASDAQ:CVCO) & Installed Building Products (NYSE:IBP)

Cavco Industries (NASDAQ:CVCO) and Installed Building Products (NYSE:IBP) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Insider & Institutional Ownership

95.6% of Cavco Industries shares are owned by institutional investors. Comparatively, 99.6% of Installed Building Products shares are owned by institutional investors. 1.7% of Cavco Industries shares are owned by insiders. Comparatively, 13.8% of Installed Building Products shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Cavco Industries has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Cavco Industries and Installed Building Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	0	2	4	1	2.86
Installed Building Products	1	11	2	0	2.07

Cavco Industries presently has a consensus target price of $695.00, indicating a potential upside of 3.15%. Installed Building Products has a consensus target price of $229.08, indicating a potential upside of 0.52%. Given Cavco Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Cavco Industries is more favorable than Installed Building Products.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.68%	16.60%	12.05%
Installed Building Products	8.46%	42.12%	13.20%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.40 billion	2.14	$190.55 million	$23.60	28.55
Installed Building Products	$2.97 billion	2.04	$265.40 million	$9.29	24.53

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

Summary

Installed Building Products beats Cavco Industries on 8 of the 15 factors compared between the two stocks.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

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.