Critical Contrast: Installed Building Products (NYSE:IBP) versus Hamilton Beach Brands (NYSE:HBB)

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

Analyst Recommendations

This is a breakdown of current recommendations for Installed Building Products and Hamilton Beach Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Installed Building Products	1	12	1	0	2.00
Hamilton Beach Brands	0	0	1	0	3.00

Installed Building Products presently has a consensus price target of $230.33, suggesting a potential upside of 4.71%. Given Installed Building Products’ higher probable upside, analysts plainly believe Installed Building Products is more favorable than Hamilton Beach Brands.

Risk & Volatility

Installed Building Products has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Hamilton Beach Brands has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

99.6% of Installed Building Products shares are held by institutional investors. Comparatively, 50.5% of Hamilton Beach Brands shares are held by institutional investors. 13.8% of Installed Building Products shares are held by company insiders. Comparatively, 39.0% of Hamilton Beach Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Installed Building Products pays an annual dividend of $1.56 per share and has a dividend yield of 0.7%. Hamilton Beach Brands pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Installed Building Products pays out 17.7% of its earnings in the form of a dividend. Hamilton Beach Brands pays out 11.4% 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. Hamilton Beach Brands has increased its dividend for 2 consecutive years. Hamilton Beach Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Installed Building Products and Hamilton Beach Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Installed Building Products	$2.99 billion	1.95	$265.40 million	$8.79	25.03
Hamilton Beach Brands	$606.85 million	0.71	$26.45 million	$4.39	7.30

Installed Building Products has higher revenue and earnings than Hamilton Beach Brands. Hamilton Beach Brands 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.

Profitability

This table compares Installed Building Products and Hamilton Beach Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Installed Building Products	7.87%	39.86%	12.22%
Hamilton Beach Brands	9.60%	29.48%	14.77%

Summary

Installed Building Products beats Hamilton Beach Brands on 9 of the 16 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 Hamilton Beach Brands

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides consumer products under the Hamilton Beach and Proctor Silex brands; products under the Hamilton Beach Professional in the premium market; farm-to-table and field-to-table food processing equipment under the Weston brand; countertop appliances under the Wolf Gourmet brand; garment care products under the CHI brand; cocktail delivery system under the Bartesian brand; air purifiers under the Clorox and TrueAir brands; and water filtration systems under the Brita brand. In addition, it offers injection care management system under the Hamilton Beach Health brand; and commercial products under the Hamilton Beach Commercial and the Proctor Silex Commercial brands, as well as supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, fast food chains, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.