Analyzing TopBuild (NYSE:BLD) & Connectm Technology Solutions (NASDAQ:CNTM)

TopBuild (NYSE:BLD) and Connectm Technology Solutions (NASDAQ:CNTM) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

TopBuild has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Connectm Technology Solutions has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares TopBuild and Connectm Technology Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TopBuild	$5.26 billion	2.29	$614.25 million	$19.84	19.08
Connectm Technology Solutions	$19.42 million	0.13	-$14.94 million	$0.00	-453.97

TopBuild has higher revenue and earnings than Connectm Technology Solutions. Connectm Technology Solutions is trading at a lower price-to-earnings ratio than TopBuild, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TopBuild and Connectm Technology Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TopBuild	11.74%	25.72%	12.67%
Connectm Technology Solutions	N/A	N/A	-20.55%

Analyst Ratings

This is a breakdown of recent ratings and price targets for TopBuild and Connectm Technology Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TopBuild	0	2	8	0	2.80
Connectm Technology Solutions	0	0	0	0	N/A

TopBuild presently has a consensus target price of $446.89, indicating a potential upside of 18.06%. Given TopBuild’s higher possible upside, equities analysts clearly believe TopBuild is more favorable than Connectm Technology Solutions.

Institutional & Insider Ownership

95.7% of TopBuild shares are owned by institutional investors. Comparatively, 79.6% of Connectm Technology Solutions shares are owned by institutional investors. 0.5% of TopBuild shares are owned by insiders. Comparatively, 21.2% of Connectm Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

TopBuild beats Connectm Technology Solutions on 12 of the 13 factors compared between the two stocks.

About TopBuild

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products. The company also offers insulation installation services for fiberglass batts and rolls, blown-in loose fill fiberglass, polyurethane spray foam, and blown-in loose fill cellulose applications. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates installation branches and distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

About Connectm Technology Solutions

ConnectM Technology Solutions, Inc., a technology company, focuses on advancing the electrification economy by integrating electrified energy assets with its AI-driven technology solutions platform. It provides residential and light commercial buildings, and all-electric original equipment manufacturers with a platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. The company was incorporated in 2021 and is headquartered in Marlborough, Massachusetts.