Head to Head Survey: Masco Corporation (NYSE:MAS) vs. Its Competitors

Masco Corporation (NYSE: MAS) is one of 24 public companies in the “Construction Supplies & Fixtures” industry, but how does it contrast to its peers? We will compare Masco Corporation to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Dividends

Masco Corporation pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Masco Corporation pays out 25.0% of its earnings in the form of a dividend. As a group, “Construction Supplies & Fixtures” companies pay a dividend yield of 1.5% and pay out 31.5% of their earnings in the form of a dividend. Masco Corporation has increased its dividend for 3 consecutive years.

Risk and Volatility

Masco Corporation has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Masco Corporation’s peers have a beta of 1.46, indicating that their average share price is 46% more volatile than the S&P 500.

Profitability

This table compares Masco Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masco Corporation 7.23% -7,325.00% 11.03%
Masco Corporation Competitors -22.32% -303.27% 5.69%

Earnings & Valuation

This table compares Masco Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Masco Corporation $7.47 billion $1.23 billion 23.88
Masco Corporation Competitors $2.61 billion $332.50 million 27.40

Masco Corporation has higher revenue and earnings than its peers. Masco Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Masco Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masco Corporation 0 6 13 0 2.68
Masco Corporation Competitors 60 439 756 15 2.57

Masco Corporation presently has a consensus target price of $42.69, indicating a potential upside of 6.43%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 13.86%. Given Masco Corporation’s peers higher probable upside, analysts clearly believe Masco Corporation has less favorable growth aspects than its peers.

Institutional and Insider Ownership

88.3% of Masco Corporation shares are owned by institutional investors. Comparatively, 86.9% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 1.3% of Masco Corporation shares are owned by insiders. Comparatively, 5.6% of shares of all “Construction Supplies & Fixtures” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Masco Corporation beats its peers on 9 of the 15 factors compared.

About Masco Corporation

Masco Corporation designs, manufactures, markets and distributes branded home improvement and building products. The Company operates through four business segments: Plumbing Products, Decorative Architectural Products, Cabinetry Products, and Windows and Other Specialty Products. The Company’s portfolio of brands includes BEHR paint; DELTA and HANSGROHE faucets, bath and shower fixtures; KRAFTMAID and MERILLAT cabinets; MILGARD windows and doors, and HOT SPRING spas. The Company’s plumbing products include faucets, showerheads, handheld showers, valves, bathing units, shower enclosures and toilets and are sold to home center retailers and to wholesalers and distributors. It also produces architectural coatings, including paints, primers, specialty paints, stains and waterproofing products. In North America, it manufactures and sells value-priced, stock and semi-custom assembled cabinetry for kitchen, bath, storage, home office and home entertainment applications.

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