IBP vs AAON

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus 1. 0% for Installed Building Products, Inc. (IBP). Installed Building Products, Inc. (IBP) offers the better valuation at 22. 3x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate AAON, Inc. (AAON) a "Buy" — based on 5 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, Installed Building Products, Inc.

(IBP) is the cheapest at 22. 3x versus AAON, Inc. at 100. 2x. On forward P/E, Installed Building Products, Inc. is actually cheaper at 19. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Installed Building Products, Inc. wins at 0. 82x versus AAON, Inc. 's 12. 51x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +196. 3%, compared to +80. 6% for Installed Building Products, Inc. (IBP). Over 10 years, the gap is even starker: AAON returned +668. 2% versus IBP's +660. 5%. 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), Installed Building Products, Inc.

(IBP) is the lower-risk stock at 1. 31β versus AAON, Inc. 's 1. 79β — meaning AAON is approximately 37% more volatile than IBP relative to the S&P 500. On balance sheet safety, AAON, Inc. (AAON) carries a lower debt/equity ratio of 48% versus 148% for Installed Building Products, Inc. — 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. 0% for Installed Building Products, Inc. (IBP). On earnings-per-share growth, the picture is similar: Installed Building Products, Inc. grew EPS 6. 7% 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.

Installed Building Products, Inc.

(IBP) is the more profitable company, earning 8. 9% net margin versus 7. 5% for AAON, Inc. — meaning it keeps 8. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IBP leads at 13. 0% versus 10. 1% for AAON. At the gross margin level — before operating expenses — IBP leads at 34. 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, Installed Building Products, Inc. (IBP) is the more undervalued stock at a PEG of 0. 82x versus AAON, Inc. 's 12. 51x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Installed Building Products, Inc. (IBP) trades at 19. 9x forward P/E versus 68. 0x for AAON, Inc. — 48. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IBP: 15. 9% to $251. 33.

All stocks in this comparison pay dividends.

Installed Building Products, Inc. (IBP) offers the highest yield at 1. 5%, versus 0. 3% for AAON, Inc. (AAON).

For long-horizon retirement investors, Installed Building Products, Inc.

(IBP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 5% yield, +660. 5% 10Y return). AAON, Inc. (AAON) carries a higher beta of 1. 79 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (IBP: +660. 5%, AAON: +668. 2%), 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.

These companies operate in different sectors (IBP (Consumer Cyclical) and AAON (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: IBP is a small-cap quality compounder stock; AAON is a mid-cap high-growth stock. IBP pays a dividend while AAON does not, making them suitable for different income and tax situations. 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.