Reviewing MasterBrand (NYSE:MBC) and Hayward (NYSE:HAYW)

Hayward (NYSE:HAYW) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Hayward and MasterBrand, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	6	2	0	2.25
MasterBrand	1	0	0	0	1.00

Hayward presently has a consensus target price of $17.50, suggesting a potential upside of 19.45%. Given Hayward’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hayward is more favorable than MasterBrand.

Profitability

This table compares Hayward and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	13.83%	11.61%	5.91%
MasterBrand	-3.49%	3.65%	1.60%

Valuation and Earnings

This table compares Hayward and MasterBrand”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.12 billion	2.77	$151.57 million	$0.74	19.80
MasterBrand	$2.73 billion	0.68	$26.70 million	($0.69)	-13.19

Hayward has higher earnings, but lower revenue than MasterBrand. MasterBrand is trading at a lower price-to-earnings ratio than Hayward, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

87.3% of MasterBrand shares are held by institutional investors. 4.7% of Hayward shares are held by insiders. Comparatively, 2.8% of MasterBrand shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Hayward has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Summary

Hayward beats MasterBrand on 11 of the 14 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

About MasterBrand

MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.