With a $17-billion bet on TopBuild Corp. (NYSE: BLD), QXO Inc. (NYSE: QXO) is positioning itself to be one of the biggest building products companies in the country. Besides a direct investment in QXO, investors might take a hard turn away from QXO and look at one of the biggest competitors, Installed Building Products, Inc. (NYSE: IBP).
While QXO's in-progress acquisition of rival TopBuild has garnered the most headlines, the company is truly on a shopping spree: it has already finished two other major acquisitions in the last year or so (Beacon Roofing Supply and Kodiak Building Partners, totaling more than $13 billion). The company is deploying capital in a hugely aggressive manner. The question for investors is whether QXO's plan to consolidate will pay off and allow the company to meet an ambitious $50-billion annual revenue goal in the next few years, or whether it is setting itself up for disaster.
