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

Profitability

This table compares Masonite International Corporation and Tecnoglass’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masonite International Corporation 4.95% 14.01% 6.36%
Tecnoglass -2.45% 16.94% 4.36%

Volatility & Risk

Masonite International Corporation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Tecnoglass has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Insider & Institutional Ownership

98.1% of Masonite International Corporation shares are held by institutional investors. Comparatively, 3.8% of Tecnoglass shares are held by institutional investors. 2.2% of Masonite International Corporation shares are held by insiders. Comparatively, 67.2% of Tecnoglass shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Masonite International Corporation and Tecnoglass’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Masonite International Corporation $1.98 billion 0.94 $225.38 million $3.19 19.78
Tecnoglass $308.14 million 0.69 $57.67 million ($0.27) -23.11

Masonite International Corporation has higher revenue and earnings than Tecnoglass. Tecnoglass 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.

Dividends

Tecnoglass pays an annual dividend of $0.13 per share and has a dividend yield of 2.1%. Masonite International Corporation does not pay a dividend. Tecnoglass pays out -48.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Masonite International Corporation and Tecnoglass, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International Corporation 0 2 6 0 2.75
Tecnoglass 0 1 1 0 2.50

Masonite International Corporation currently has a consensus target price of $75.00, suggesting a potential upside of 18.86%. Tecnoglass has a consensus target price of $17.00, suggesting a potential upside of 172.44%. Given Tecnoglass’ higher probable upside, analysts clearly believe Tecnoglass is more favorable than Masonite International Corporation.

Summary

Masonite International Corporation beats Tecnoglass on 10 of the 15 factors compared between the two stocks.

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.

Tecnoglass Company Profile

Tecnoglass Inc., through its subsidiaries, manufactures and sells architectural glass and windows for residential and commercial construction industries in North, Central, and South America. The company offers soft coat, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass. It also produces, exports, imports, and markets aluminum products, including profiles, rods, bars, plates, tubes, and other hardware used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and similar products. In addition, the company provides floating facades, windows and doors, commercial display windows, hurricane-proof windows, automatic doors, bathroom dividers, polyvinyl structures, and other components of architectural systems. It markets and sells its products under the Tecnoglass, ES Windows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

Receive News & Stock Ratings for Masonite International Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Masonite International Corporation and related stocks with our FREE daily email newsletter.