Reviewing Obayashi (OTCMKTS:OBYCF) and Installed Building Products (NYSE:IBP)

Obayashi (OTCMKTS:OBYCF) and Installed Building Products (NYSE:IBP) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Obayashi and Installed Building Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obayashi	0	0	0	0	0.00
Installed Building Products	2	6	4	0	2.17

Installed Building Products has a consensus target price of $212.45, suggesting a potential upside of 9.19%. Given Installed Building Products’ stronger consensus rating and higher possible upside, analysts clearly believe Installed Building Products is more favorable than Obayashi.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Obayashi	5.57%	7.47%	2.94%
Installed Building Products	8.39%	60.73%	14.16%

Risk and Volatility

Obayashi has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Installed Building Products has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obayashi	$17.21 billion	0.65	$963.94 million	$1.33	11.58
Installed Building Products	$2.94 billion	1.83	$256.60 million	$8.77	22.19

Obayashi has higher revenue and earnings than Installed Building Products. Obayashi 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.

Insider & Institutional Ownership

99.6% of Installed Building Products shares are held by institutional investors. 16.2% of Installed Building Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Installed Building Products beats Obayashi on 12 of the 14 factors compared between the two stocks.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.

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.