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IBP vs LKQ

IBP
Installed Building Products, Inc.
NEUTRAL
Price
$298.53
Market Cap
$8.04B
Sector
Consumer Cyclical
AI Confidence
85%
LKQ
LKQ Corporation
NEUTRAL
Price
$30.38
Market Cap
$7.75B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
IBP
30.78
LKQ
13.15
Forward P/E
IBP
24.72
LKQ
9.14
P/B Ratio
IBP
11.27
LKQ
1.19
P/S Ratio
IBP
2.71
LKQ
0.57
EV/EBITDA
IBP
17.49
LKQ
8.37

Profitability

Gross Margin
IBP
33.97%
LKQ
38.57%
Operating Margin
IBP
14.62%
LKQ
6.43%
Profit Margin
IBP
8.93%
LKQ
4.45%
ROE
IBP
37.51%
LKQ
9.48%
ROA
IBP
11.77%
LKQ
4.51%

Growth

Revenue Growth
IBP
-0.4%
LKQ
2.7%
Earnings Growth
IBP
18.2%
LKQ
-57.7%

Financial Health

Debt/Equity
IBP
1.4
LKQ
0.77
Current Ratio
IBP
3.03
LKQ
1.67
Quick Ratio
IBP
2.31
LKQ
0.48

Dividends

Dividend Yield
IBP
1.11%
LKQ
3.95%
Payout Ratio
IBP
32.75%
LKQ
51.95%

AI Verdict

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
LKQ NEUTRAL

LKQ presents as a classic value trap with a stable Piotroski F-Score of 4/9 and a current price ($30.38) trading below its Graham Number ($36.50). While valuation multiples are attractive (P/E 13.15, P/S 0.57), the company is suffering from a severe earnings collapse of -57.70% YoY and a completely bearish technical trend. The discrepancy between the Graham Number and the growth-based intrinsic value ($16.17) highlights a conflict between asset-based value and poor earnings performance. Overall, the stock is fundamentally cheap but lacks a growth catalyst.

Strengths
Trading below Graham Number ($36.50) suggesting defensive value
Very low Price-to-Sales ratio (0.57) relative to sector
Sustainable dividend yield of 3.95% with a reasonable 51.95% payout ratio
Risks
Severe earnings contraction (-57.70% YoY)
Poor short-term liquidity indicated by a Quick Ratio of 0.48
Stagnant revenue growth (2.70% YoY) and negative Q/Q growth

Compare Another Pair

IBP vs LKQ: Head-to-Head Comparison

This page compares Installed Building Products, Inc. (IBP) and LKQ Corporation (LKQ) 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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