BLD vs AAON

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus 1. 5% for TopBuild Corp. (BLD). TopBuild Corp. (BLD) offers the better valuation at 24. 0x trailing P/E (24. 1x forward), making it the more compelling value choice. Analysts rate TopBuild Corp. (BLD) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, TopBuild Corp.

(BLD) is the cheapest at 24. 0x versus AAON, Inc. at 76. 2x. On forward P/E, TopBuild Corp. is actually cheaper at 24. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: TopBuild Corp. wins at 1. 22x versus AAON, Inc. 's 9. 13x — a reasonable growth-adjusted valuation.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +134. 3%, compared to +96. 8% for TopBuild Corp. (BLD). Over 10 years, the gap is even starker: BLD returned +1215% versus AAON's +440. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), TopBuild Corp.

(BLD) is the lower-risk stock at 1. 47β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 25% more volatile than BLD relative to the S&P 500. On balance sheet safety, AAON, Inc. (AAON) carries a lower debt/equity ratio of 48% versus 136% for TopBuild Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AAON, Inc.

(AAON) is pulling ahead at 20. 1% versus 1. 5% for TopBuild Corp. (BLD). On earnings-per-share growth, the picture is similar: TopBuild Corp. grew EPS -10. 0% year-over-year, compared to -36. 1% for AAON, Inc.. Over a 3-year CAGR, AAON leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

TopBuild Corp.

(BLD) is the more profitable company, earning 9. 6% net margin versus 7. 5% for AAON, Inc. — meaning it keeps 9. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BLD leads at 14. 6% versus 10. 1% for AAON. At the gross margin level — before operating expenses — BLD leads at 29. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, TopBuild Corp. (BLD) is the more undervalued stock at a PEG of 1. 22x versus AAON, Inc. 's 9. 13x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, TopBuild Corp. (BLD) trades at 24. 1x forward P/E versus 49. 6x for AAON, Inc. — 25. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BLD: 22. 5% to $537. 80.

In this comparison, AAON (0.

4% yield) pays a dividend. BLD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, TopBuild Corp.

(BLD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1215% 10Y return). AAON, Inc. (AAON) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (BLD: +1215%, AAON: +440. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BLD is a mid-cap quality compounder stock; AAON is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.