Reviewing Masco Corporation (MAS) & Continental Building Products (CBPX)
Masco Corporation (NYSE: MAS) and Continental Building Products (NYSE:CBPX) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Masco Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Continental Building Products does not pay a dividend. Masco Corporation pays out 24.7% of its earnings in the form of a dividend. Continental Building Products has raised its dividend for 3 consecutive years.
Risk & Volatility
Masco Corporation has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Continental Building Products has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
This table compares Masco Corporation and Continental Building Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Continental Building Products||9.16%||15.45%||7.55%|
This is a summary of recent recommendations and price targets for Masco Corporation and Continental Building Products, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||2||1||0||2.33|
Masco Corporation currently has a consensus target price of $40.77, indicating a potential upside of 10.88%. Continental Building Products has a consensus target price of $26.50, indicating a potential upside of 8.83%. Given Masco Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Masco Corporation is more favorable than Continental Building Products.
Institutional & Insider Ownership
88.5% of Masco Corporation shares are held by institutional investors. 1.3% of Masco Corporation shares are held by company insiders. Comparatively, 0.3% of Continental Building Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Masco Corporation and Continental Building Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Masco Corporation||$7.47 billion||1.57||$1.23 billion||$1.62||22.70|
|Continental Building Products||$474.02 million||1.97||$131.29 million||$1.09||22.34|
Masco Corporation has higher revenue and earnings than Continental Building Products. Continental Building Products 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 Continental Building Products on 13 of the 17 factors compared between the two stocks.
About Masco Corporation
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.
About Continental Building Products
Continental Building Products, Inc. is a manufacturer of gypsum wallboard and complementary finishing products. The Company operates through wallboard segment. Gypsum wallboard is a primary building material used in residential and commercial construction and in repair and remodel (R&R). It offers customers a range of gypsum wallboard products, including LiftLite, its lightweight product designed to lift and install; its Mold Defense line of products designed for protection against mold and mildew, and its Weather Defense line of moisture and mold-resistant exterior sheathing. The Company also operates a finishing products business that manufactures a line of joint compounds at its plant in Silver Grove (Kentucky) and its joint compound plant in Chambly (Quebec). The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company’s manufacturing facilities are concentrated in the eastern United States and eastern Canada.
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