Contrasting Installed Building Products (IBP) and Xinyuan Real Estate (XIN)

Installed Building Products (NYSE:IBP) and Xinyuan Real Estate (NYSE:XIN) are both small-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Installed Building Products and Xinyuan Real Estate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Installed Building Products 3.70% 24.57% 6.66%
Xinyuan Real Estate 1.59% 3.21% 0.40%

Institutional & Insider Ownership

70.0% of Installed Building Products shares are held by institutional investors. Comparatively, 12.0% of Xinyuan Real Estate shares are held by institutional investors. 31.1% of Installed Building Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Xinyuan Real Estate pays an annual dividend of $0.39 per share and has a dividend yield of 9.4%. Installed Building Products does not pay a dividend. Xinyuan Real Estate has increased its dividend for 3 consecutive years.

Volatility and Risk

Installed Building Products has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Xinyuan Real Estate has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Installed Building Products and Xinyuan Real Estate, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Installed Building Products 0 6 5 0 2.45
Xinyuan Real Estate 0 0 0 0 N/A

Installed Building Products currently has a consensus target price of $60.89, indicating a potential upside of 99.90%. Given Installed Building Products’ higher possible upside, analysts plainly believe Installed Building Products is more favorable than Xinyuan Real Estate.

Valuation and Earnings

This table compares Installed Building Products and Xinyuan Real Estate’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Installed Building Products $1.13 billion 0.85 $41.14 million $1.19 25.60
Xinyuan Real Estate $1.98 billion 0.17 $63.62 million N/A N/A

Xinyuan Real Estate has higher revenue and earnings than Installed Building Products.

Summary

Installed Building Products beats Xinyuan Real Estate on 9 of the 14 factors compared between the two stocks.

Installed Building Products Company Profile

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, shower doors, closet shelving and mirrors, and other products in the continental United States. It offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. The company 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. It serves homebuilders, multi-family and commercial construction companies, 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 headquartered in Columbus, Ohio.

Xinyuan Real Estate Company Profile

Xinyuan Real Estate Co., Ltd., through its subsidiaries, develops residential real estate properties for middle income consumers in the People's Republic of China and the United States. It develops residential projects, such as multi-layer apartment buildings, sub-high-rise apartment buildings, or high-rise apartment buildings; auxiliary services and amenities, such as retail outlets, leisure and health facilities, kindergartens, and schools; and small scale residential properties, as well as office, mixed-use, and commercial properties. The company also acquires development sites through public auctions of government land and direct negotiations. In addition, it provides property management services for its developments and other real estate-related services. Further, the company offers landscaping engineering and management, real estate consulting and marketing, leasing management, culture and media, property decoration, electronic commerce, technical, and management consulting services; operates retail stores; sells construction materials; develops technologies; and installs intercom systems. Xinyuan Real Estate Co., Ltd. was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

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