Valmont Industries (NYSE: VMI) and Masco Corporation (NYSE:MAS) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
This table compares Valmont Industries and Masco Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
84.5% of Valmont Industries shares are held by institutional investors. Comparatively, 88.8% of Masco Corporation shares are held by institutional investors. 3.3% of Valmont Industries shares are held by insiders. Comparatively, 1.3% of Masco Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Valmont Industries has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Masco Corporation has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Valmont Industries and Masco Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valmont Industries currently has a consensus price target of $171.00, indicating a potential upside of 8.26%. Masco Corporation has a consensus price target of $39.88, indicating a potential upside of 4.11%. Given Valmont Industries’ higher possible upside, analysts clearly believe Valmont Industries is more favorable than Masco Corporation.
Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 0.9%. Masco Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Valmont Industries pays out 18.6% of its earnings in the form of a dividend. Masco Corporation pays out 25.3% 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. Masco Corporation has raised its dividend for 3 consecutive years. Masco Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Valmont Industries and Masco Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Valmont Industries||$2.56 billion||1.39||$337.47 million||$8.07||19.57|
|Masco Corporation||$7.41 billion||1.65||$1.20 billion||$1.58||24.24|
Masco Corporation has higher revenue and earnings than Valmont Industries. Valmont Industries is trading at a lower price-to-earnings ratio than Masco Corporation, indicating that it is currently the more affordable of the two stocks.
Masco Corporation beats Valmont Industries on 13 of the 17 factors compared between the two stocks.
Valmont Industries Company Profile
Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.
Masco Corporation Company Profile
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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