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HD vs IBP

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
IBP
Installed Building Products, Inc.
NEUTRAL
Price
$298.53
Market Cap
$8.04B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
IBP
30.78
Forward P/E
HD
20.17
IBP
24.72
P/B Ratio
HD
25.57
IBP
11.27
P/S Ratio
HD
1.99
IBP
2.71
EV/EBITDA
HD
15.68
IBP
17.49

Profitability

Gross Margin
HD
33.32%
IBP
33.97%
Operating Margin
HD
10.08%
IBP
14.62%
Profit Margin
HD
8.6%
IBP
8.93%
ROE
HD
145.54%
IBP
37.51%
ROA
HD
12.98%
IBP
11.77%

Growth

Revenue Growth
HD
-3.8%
IBP
-0.4%
Earnings Growth
HD
-14.2%
IBP
18.2%

Financial Health

Debt/Equity
HD
5.14
IBP
1.4
Current Ratio
HD
1.06
IBP
3.03
Quick Ratio
HD
0.21
IBP
2.31

Dividends

Dividend Yield
HD
2.83%
IBP
1.11%
Payout Ratio
HD
64.65%
IBP
32.75%

AI Verdict

HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14
IBP NEUTRAL

IBP presents a dichotomy of elite operational efficiency and concerning valuation/insider signals. While the Piotroski F-Score of 4/9 indicates stable health and the company boasts a superior ROE of 37.51% compared to its sector, the stock trades at a massive premium to its Graham Number ($76.02). Earnings growth remains strong (18.20% YoY) despite stagnant revenue growth (-0.40%), suggesting internal cost optimizations rather than market expansion. The primary headwind is a starkly bearish insider sentiment, highlighted by the CEO selling 400,000 shares.

Strengths
Exceptional ROE (37.51%) and ROA (11.77%) far exceeding sector averages
Strong liquidity position with a Current Ratio of 3.03 and Quick Ratio of 2.31
Consistent earnings track record with 3 of the last 4 quarters beating estimates
Risks
Stagnant to negative revenue growth (-0.40% YoY) indicating a potential growth ceiling
Extreme valuation premium relative to book value (P/B of 11.27)
Heavy insider selling, specifically a large liquidation by the CEO

Compare Another Pair

HD vs IBP: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and Installed Building Products, Inc. (IBP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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