Masonite International (NYSE: DOOR) and Masco (NYSE:MAS) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Valuation and Earnings
This table compares Masonite International and Masco’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Masonite International||$2.03 billion||0.85||$151.73 million||$3.33||18.51|
|Masco||$7.64 billion||1.65||$533.00 million||$1.94||20.72|
This is a breakdown of recent ratings and price targets for Masonite International and Masco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Masonite International currently has a consensus price target of $77.00, indicating a potential upside of 24.90%. Masco has a consensus price target of $44.29, indicating a potential upside of 10.19%. Given Masonite International’s higher possible upside, equities research analysts clearly believe Masonite International is more favorable than Masco.
Institutional & Insider Ownership
99.2% of Masonite International shares are held by institutional investors. Comparatively, 90.1% of Masco shares are held by institutional investors. 2.4% of Masonite International shares are held by company insiders. Comparatively, 1.2% of Masco shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Masonite International and Masco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Masonite International 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
Masonite International has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Masco has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.
Masco beats Masonite International on 11 of the 17 factors compared between the two stocks.
Masonite International Company Profile
Masonite International Corporation is designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling, and the non-residential building construction markets. The Company principally operates in North America; Europe, Asia and Latin America, and Africa. The Company markets and sells its products to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors and architects through wholesale and retail distribution channels. Its portfolio of brands includes Masonite, Marshfield, Premdor, Mohawk, Megantic, Algoma, Baillargeon, Birchwood Best and Lemieux. In February 2014, Masonite International Corporation completed the acquisition of Door-Stop International Limited.
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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