Critical Comparison: Masonite International (DOOR) versus Masco (MAS)

Masonite International (NYSE: DOOR) and Masco (NYSE:MAS) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

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
Masonite International 7.46% 14.53% 6.36%
Masco 6.97% 1,000.81% 11.44%

Dividends

Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. 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.

Insider & Institutional Ownership

99.2% of Masonite International shares are owned by institutional investors. Comparatively, 90.3% of Masco shares are owned by institutional investors. 2.4% of Masonite International shares are owned by insiders. Comparatively, 1.2% of Masco shares 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.

Valuation & Earnings

This table compares Masonite International and Masco’s top-line 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 18.54
Masco $7.64 billion 1.61 $533.00 million $1.94 20.23

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

Volatility and Risk

Masonite International has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Masco has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Masonite International and Masco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International 0 4 5 0 2.56
Masco 0 6 12 0 2.67

Masonite International presently has a consensus target price of $77.00, suggesting a potential upside of 24.70%. Masco has a consensus target price of $44.57, suggesting a potential upside of 13.59%. Given Masonite International’s higher probable upside, analysts plainly believe Masonite International is more favorable than Masco.

Summary

Masco beats Masonite International on 11 of the 17 factors compared between the two stocks.

Masonite International Company Profile

Masonite International Corporation designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide. The company offers molded panel, flush, stile and rail, routed medium-density fiberboard (MDF), steel, and fiberglass residential doors, as well as architectural interior doors. It also provides various door components, including interior door facings, agri-fiber and particleboard door cores, MDF and wood cut-stock components, critical door components, wood veneer door skins, and mineral and particleboard door cores. The company offers its products under the Masonite, Marshfield, Premdor, Mohawk, Megantic, Algoma, Birchwood Best, Door-Stop, Harring Doors, Performance Doorset Solutions, and National Hickman brands to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors, and architects through wholesale and retail distribution channels. Masonite International Corporation was founded in 1925 and is headquartered in Tampa, Florida.

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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