Patrick Industries (NASDAQ: PATK) and Masonite International Corporation (NYSE:DOOR) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Risk and Volatility
Patrick Industries has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Masonite International Corporation has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
This table compares Patrick Industries and Masonite International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Masonite International Corporation||4.75%||14.38%||6.33%|
Institutional and Insider Ownership
90.0% of Patrick Industries shares are held by institutional investors. Comparatively, 98.3% of Masonite International Corporation shares are held by institutional investors. 6.2% of Patrick Industries shares are held by insiders. Comparatively, 2.2% of Masonite International Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Patrick Industries and Masonite International Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Masonite International Corporation||0||4||6||0||2.60|
Patrick Industries currently has a consensus price target of $80.67, indicating a potential downside of 7.70%. Masonite International Corporation has a consensus price target of $75.11, indicating a potential upside of 6.09%. Given Masonite International Corporation’s higher probable upside, analysts plainly believe Masonite International Corporation is more favorable than Patrick Industries.
Valuation & Earnings
This table compares Patrick Industries and Masonite International Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Patrick Industries||$1.22 billion||1.20||$55.57 million||$4.37||20.00|
|Masonite International Corporation||$1.97 billion||1.02||$98.62 million||$3.16||22.41|
Masonite International Corporation has higher revenue and earnings than Patrick Industries. Patrick Industries is trading at a lower price-to-earnings ratio than Masonite International Corporation, indicating that it is currently the more affordable of the two stocks.
Masonite International Corporation beats Patrick Industries on 8 of the 14 factors compared between the two stocks.
Patrick Industries Company Profile
Patrick Industries, Inc. is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The Company’s segments include Manufacturing and Distribution. It manufactures a range of products, which include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass and plastic component products including front and rear caps and marine helms, interior passage doors, RV painting, and slotwall panels and components, among others.
Masonite International Corporation Company Profile
Masonite International Corporation is designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling, and the non-residential building construction markets. The Company principally operates in North America; Europe, Asia and Latin America, and Africa. The Company markets and sells its products to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors and architects through wholesale and retail distribution channels. Its portfolio of brands includes Masonite, Marshfield, Premdor, Mohawk, Megantic, Algoma, Baillargeon, Birchwood Best and Lemieux. In February 2014, Masonite International Corporation completed the acquisition of Door-Stop International Limited.
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