American Woodmark (NASDAQ: AMWD) and Masco (NYSE:MAS) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Masco pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. American Woodmark 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 table compares American Woodmark and Masco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
76.0% of American Woodmark shares are owned by institutional investors. Comparatively, 90.3% of Masco shares are owned by institutional investors. 1.1% of American Woodmark shares are owned by insiders. Comparatively, 1.2% of Masco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
American Woodmark has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Masco has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
This is a summary of recent ratings for American Woodmark and Masco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Woodmark presently has a consensus target price of $142.00, suggesting a potential upside of 65.02%. Masco has a consensus target price of $44.75, suggesting a potential upside of 19.88%. Given American Woodmark’s higher probable upside, equities analysts clearly believe American Woodmark is more favorable than Masco.
Earnings & Valuation
This table compares American Woodmark and Masco’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Woodmark||$1.03 billion||1.46||$71.19 million||$4.45||19.34|
|Masco||$7.64 billion||1.53||$533.00 million||$1.94||19.24|
Masco has higher revenue and earnings than American Woodmark. Masco is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.
Masco beats American Woodmark on 12 of the 17 factors compared between the two stocks.
About American Woodmark
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and home construction markets in the United States. The company offers framed stock cabinets in approximately 514 various cabinet lines, which include 85 door designs in a range of painted and stained finishes on maple, cherry, and oak, as well as engineered fronts under the Duraform mark name. It offers cabinets in various sizes, and construction and decorative options for a range of design layouts; and turnkey installation services to its direct builder customers through a network of seven service centers. The company sells its products under the American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series, and Waypoint Living Spaces brand names. It markets its products primarily through home centers, builders, and independent dealers and distributors. American Woodmark Corporation was founded in 1980 and is headquartered in Winchester, Virginia.
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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