Comparing Masco (MAS) & Patrick Industries (PATK)

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

Dividends

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Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Patrick Industries does not pay a dividend. Masco pays out 21.6% of its earnings in the form of a dividend. Masco has raised its dividend for 4 consecutive years.

Volatility & Risk

Masco has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

90.1% of Masco shares are owned by institutional investors. Comparatively, 88.0% of Patrick Industries shares are owned by institutional investors. 1.2% of Masco shares are owned by company insiders. Comparatively, 5.2% of Patrick Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Masco and Patrick Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masco 6.97% 1,000.81% 11.44%
Patrick Industries 5.24% 23.60% 10.86%

Earnings & Valuation

This table compares Masco and Patrick Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masco $7.64 billion 1.65 $533.00 million $1.94 20.73
Patrick Industries $1.64 billion 0.95 $85.71 million $3.18 19.10

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Masco and Patrick Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masco 0 6 12 0 2.67
Patrick Industries 0 1 3 0 2.75

Masco currently has a consensus target price of $44.29, indicating a potential upside of 10.11%. Patrick Industries has a consensus target price of $75.75, indicating a potential upside of 24.69%. Given Patrick Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Patrick Industries is more favorable than Masco.

Summary

Masco beats Patrick Industries on 12 of the 17 factors compared between the two stocks.

About Masco

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.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, walls, countertops, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, solid surface, granite, and quartz countertop fabrication products; RV paintings; fabricated aluminum products; fiberglass and plastic components; softwoods lumber; custom cabinets; polymer-based flooring products; and electrical systems and components, including instrument and dash panels, and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moldings; interior passage doors; slide-out trim and fascia products; thermoformed shower surrounds; specialty bath and closet building products; fiberglass and plastic helm systems and components; wiring and wire harnesses; aluminum fuel tanks; CNC molds and composite parts; and slotwall panels and components. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, wiring products, electrical and plumbing products, cement siding products, raw and processed lumber, fiber reinforced polyester products, interior passage doors, roofing products, laminate and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. It also offers transportation and logistics services. Patrick Industries, Inc. offers its products through a network of manufacturing and distribution centers. The company was founded in 1959 and is based in Elkhart, Indiana.

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