Financial Survey: James Hardie Industries (NYSE:JHX) versus Inno (NASDAQ:INHD)

by · The Markets Daily

James Hardie Industries (NYSE:JHXGet Free Report) and Inno (NASDAQ:INHDGet Free Report) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for James Hardie Industries and Inno, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
James Hardie Industries041002.71
Inno10001.00

James Hardie Industries presently has a consensus target price of $26.13, suggesting a potential upside of 29.50%. Given James Hardie Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe James Hardie Industries is more favorable than Inno.

Valuation and Earnings

This table compares James Hardie Industries and Inno”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
James Hardie Industries$3.88 billion2.24$424.00 million$0.2774.71
Inno$2.85 million0.83-$7.08 million($14.81)-0.02

James Hardie Industries has higher revenue and earnings than Inno. Inno is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares James Hardie Industries and Inno’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
James Hardie Industries2.70%13.52%5.81%
Inno-158.32%-24.17%-23.51%

Volatility and Risk

James Hardie Industries has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Inno has a beta of -0.58, suggesting that its stock price is 158% less volatile than the S&P 500.

Insider & Institutional Ownership

8.0% of James Hardie Industries shares are held by institutional investors. Comparatively, 0.2% of Inno shares are held by institutional investors. 0.1% of Inno shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

James Hardie Industries beats Inno on 13 of the 14 factors compared between the two stocks.

About James Hardie Industries

(Get Free Report)

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

About Inno

(Get Free Report)

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.