Masco Corporation (MAS) versus Apogee Enterprises (APOG) Financial Comparison

Masco Corporation (NYSE: MAS) and Apogee Enterprises (NASDAQ:APOG) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Masco Corporation and Apogee Enterprises, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masco Corporation 0 6 13 0 2.68
Apogee Enterprises 0 0 3 0 3.00

Masco Corporation presently has a consensus target price of $42.69, indicating a potential upside of 6.29%. Apogee Enterprises has a consensus target price of $63.33, indicating a potential upside of 32.47%. Given Apogee Enterprises’ stronger consensus rating and higher probable upside, analysts clearly believe Apogee Enterprises is more favorable than Masco Corporation.

Earnings and Valuation

This table compares Masco Corporation and Apogee Enterprises’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Masco Corporation $7.47 billion 1.71 $1.23 billion $1.68 23.90
Apogee Enterprises $1.20 billion 1.14 $159.52 million $2.74 17.45

Masco Corporation has higher revenue and earnings than Apogee Enterprises. Apogee Enterprises is trading at a lower price-to-earnings ratio than Masco Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Masco Corporation has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

88.3% of Masco Corporation shares are owned by institutional investors. 1.3% of Masco Corporation shares are owned by company insiders. Comparatively, 3.7% of Apogee Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Masco Corporation and Apogee Enterprises’ 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%
Apogee Enterprises 6.57% 17.89% 10.27%

Dividends

Masco Corporation pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Apogee Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.2%. Masco Corporation pays out 25.0% of its earnings in the form of a dividend. Apogee Enterprises pays out 20.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apogee Enterprises has increased its dividend for 3 consecutive years. Apogee Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Apogee Enterprises beats Masco Corporation on 9 of the 17 factors compared between the two stocks.

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.

About Apogee Enterprises

Apogee Enterprises, Inc. is engaged in the design and development of glass solutions for enclosing commercial buildings and framing art. The Company operates through four segments: Architectural Glass, Architectural Services, Architectural Framing Systems and Large-Scale Optical Technologies (LSO). The Architectural Glass segment fabricates coated glass used in customized window and wall systems. The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems. The Large-Scale Optical Technologies segment manufactures glass and acrylic products for the custom picture framing and fine art markets.

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