Installed Building Products vs LGI Homes
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KIRA’s take AI analyst
I put Installed Building Products and LGI Homes side by side, using each one’s latest annual report. Here is what stands out:
- Installed Building Products is the larger business, with $3.0B of revenue in fiscal 2025 against $1.7B for LGI Homes, about 1.7 times as much.
- Installed Building Products grew revenue faster (1.0%, against −22.6%).
- Installed Building Products kept more of each dollar of sales as operating profit (13.0% operating margin, against 4.7%).
- Installed Building Products turned more of its sales into free cash flow (10.1% FCF margin, against −8.3%).
- Installed Building Products earned a higher return on the capital invested in it (22.6%, against 1.6%).
- Investors pay more for each dollar of Installed Building Products’s earnings: a P/E of 21.8x against 14.9x for LGI Homes.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Installed Building Products
IBP
10/10
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
LGI Homes
LGIH
0/10
Side by side
Best in the row
| Latest fiscal year | IBP FY25 | LGIH FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $990M |
| Revenue | $3.0B | $1.7B |
| Free cash flow | $301M | −$141M |
| Net income | $265M | $72.6M |
| Growth | ||
| Revenue growth | 1.0% | −22.6% |
| 5-year growth | 12.4% | −6.4% |
| Share count change | −3.1% | −1.5% |
| Profitability | ||
| Gross margin | 34.0% | 20.7% |
| Operating margin | 13.0% | 4.7% |
| Net margin | 8.9% | 4.3% |
| FCF margin | 10.1% | −8.3% |
| Return on capital | 22.6% | 1.6% |
| Return on equity | 37.5% | 3.5% |
| Balance sheet | ||
| Net debt | $571M | $1.6B |
| Net debt / EBITDA | 1.3x | 19.0x |
| Dividends and buybacks | $260M | $23.6M |
| Valuation & quality | ||
| P/E | 21.8x | 14.9x |
| Piotroski F-score | 7 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.