SharkNinja (NYSE:SN) and Installed Building Products (NYSE:IBP) Critical Contrast

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

Profitability

This table compares Installed Building Products and SharkNinja’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%
SharkNinja	10.06%	27.79%	14.19%

Institutional and Insider Ownership

99.6% of Installed Building Products shares are owned by institutional investors. Comparatively, 34.8% of SharkNinja shares are owned by institutional investors. 13.8% of Installed Building Products shares are owned by company insiders. Comparatively, 40.8% of SharkNinja 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.

Risk and Volatility

Installed Building Products has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Installed Building Products and SharkNinja, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	1	10	2	0	2.08
SharkNinja	0	1	12	0	2.92

Installed Building Products currently has a consensus price target of $247.55, indicating a potential upside of 22.29%. SharkNinja has a consensus price target of $188.59, indicating a potential upside of 11.89%. Given Installed Building Products’ higher possible upside, equities research analysts clearly believe Installed Building Products is more favorable than SharkNinja.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.97 billion	1.81	$265.40 million	$9.29	21.79
SharkNinja	$6.91 billion	3.44	$701.37 million	$4.90	34.40

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

Summary

SharkNinja beats Installed Building Products on 9 of the 14 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 SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.