Critical Survey: Janus International Group (NYSE:JBI) & TopBuild (NYSE:BLD)

Janus International Group (NYSE:JBI) and TopBuild (NYSE:BLD) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Earnings and Valuation

This table compares Janus International Group and TopBuild”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus International Group	$884.20 million	0.85	$53.80 million	$0.31	17.46
TopBuild	$5.41 billion	2.19	$521.73 million	$17.80	23.65

TopBuild has higher revenue and earnings than Janus International Group. Janus International Group is trading at a lower price-to-earnings ratio than TopBuild, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Janus International Group and TopBuild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janus International Group	4.82%	12.18%	5.22%
TopBuild	8.95%	23.53%	8.61%

Institutional & Insider Ownership

88.8% of Janus International Group shares are owned by institutional investors. Comparatively, 95.7% of TopBuild shares are owned by institutional investors. 4.7% of Janus International Group shares are owned by insiders. Comparatively, 0.5% of TopBuild shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Janus International Group and TopBuild, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus International Group	1	3	1	0	2.00
TopBuild	0	9	5	1	2.47

Janus International Group presently has a consensus price target of $8.33, indicating a potential upside of 53.92%. TopBuild has a consensus price target of $466.77, indicating a potential upside of 10.87%. Given Janus International Group’s higher probable upside, equities analysts clearly believe Janus International Group is more favorable than TopBuild.

Risk and Volatility

Janus International Group has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, TopBuild has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Summary

TopBuild beats Janus International Group on 13 of the 15 factors compared between the two stocks.

About Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.

About TopBuild

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products. The company also offers insulation installation services for fiberglass batts and rolls, blown-in loose fill fiberglass, polyurethane spray foam, and blown-in loose fill cellulose applications. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates installation branches and distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.