American Woodmark (NASDAQ: AMWD) and Masco (NYSE:MAS) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Insider and Institutional Ownership
75.6% of American Woodmark shares are held by institutional investors. Comparatively, 90.1% of Masco shares are held by institutional investors. 1.1% of American Woodmark shares are held by insiders. Comparatively, 1.3% of Masco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. American Woodmark does not pay a dividend. Masco pays out 21.6% of its earnings in the form of a dividend. Masco has increased its dividend for 4 consecutive years.
Volatility and Risk
American Woodmark has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Masco has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
This table compares American Woodmark and Masco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for American Woodmark and Masco, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Woodmark currently has a consensus price target of $142.00, indicating a potential upside of 43.58%. Masco has a consensus price target of $44.29, indicating a potential upside of 10.19%. Given American Woodmark’s higher possible upside, equities analysts plainly believe American Woodmark is more favorable than Masco.
Earnings & Valuation
This table compares American Woodmark and Masco’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Woodmark||$1.03 billion||1.68||$71.19 million||$4.45||22.22|
|Masco||$7.64 billion||1.65||$533.00 million||$1.94||20.72|
Masco has higher revenue and earnings than American Woodmark. Masco is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.
Masco beats American Woodmark on 10 of the 16 factors compared between the two stocks.
American Woodmark Company Profile
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 500 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes approximately 90 door designs in over 20 colors. Stock cabinets consist of cabinet interiors of varying dimensions and construction options, and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company’s products are sold under the brand names of American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series and Waypoint Living Spaces. The Company’s primary raw materials used include hard maple, soft maple, oak, cherry, and hickory lumber and plywood.
Masco Company Profile
Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. Its Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower enclosures, toilets, acrylic tubs, shower trays, spas products, exercise pools, brass and copper plumbing system components, and other non-decorative plumbing products. This segment offers its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. The company's Decorative Architectural Products segment provides architectural coatings, including paints, primers, specialty paints, stains, and waterproofing products; cabinet, door, and window hardware; and functional hardware, glass shower doors, wall plates, hook and rail products, and picture hanging accessories, as well as decorative bath hardware, and shower accessories and doors. This segment provides its products under the BEHR, KILZ, LIBERTY, BRAINERD, DELTA, and FRANKLIN BRASS brands. Its Cabinetry Products segment offers assembled cabinetry for kitchen, bath, storage, home office, and home entertainment applications under the KRAFTMAID, CARDELL, MERILLAT, and QUALITY CABINETS brands. The company's Windows and Other Specialty Products segment provides vinyl, fiberglass, and aluminum windows and patio doors; and vinyl windows, and composite and panel doors under the MILGARD, DURAFLEX, GRIFFIN, PREMIER, and EVOLUTION. It offers its products through home center retailers, online retailers, mass merchandisers, hardware stores, homebuilders, distributors, and other outlets to consumers and contractors, as well as directly to consumers. The company was founded in 1929 and is headquartered in Livonia, Michigan.
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