Patrick Industries (NASDAQ: PATK) and Masco (NYSE:MAS) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Insider & Institutional Ownership
89.8% of Patrick Industries shares are held by institutional investors. Comparatively, 90.3% of Masco shares are held by institutional investors. 5.2% of Patrick Industries shares are held by insiders. Comparatively, 1.2% of Masco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Patrick Industries has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Masco has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
This table compares Patrick Industries and Masco’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.2%. 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.
This is a breakdown of current ratings and recommmendations for Patrick Industries and Masco, as reported by MarketBeat.com.
||Strong Buy Ratings
Patrick Industries currently has a consensus price target of $75.75, indicating a potential upside of 44.29%. Masco has a consensus price target of $44.71, indicating a potential upside of 23.66%. Given Patrick Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe Patrick Industries is more favorable than Masco.
Valuation and Earnings
This table compares Patrick Industries and Masco’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
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.
Masco beats Patrick Industries on 12 of the 17 factors compared between the two stocks.
Patrick Industries Company Profile
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.
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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