Masonite International (NYSE: DOOR) and Patrick Industries (NASDAQ:PATK) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Risk and Volatility
Masonite International has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
89.3% of Patrick Industries shares are held by institutional investors. 2.2% of Masonite International shares are held by company insiders. Comparatively, 5.2% of Patrick Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Masonite International and Patrick Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Masonite International currently has a consensus price target of $75.80, indicating a potential upside of 2.43%. Patrick Industries has a consensus price target of $80.67, indicating a potential downside of 18.60%. Given Masonite International’s higher probable upside, equities research analysts plainly believe Masonite International is more favorable than Patrick Industries.
Valuation and Earnings
This table compares Masonite International and Patrick Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Masonite International||$1.97 billion||1.07||$98.62 million||$3.16||23.42|
|Patrick Industries||$1.22 billion||1.36||$55.57 million||$4.37||22.68|
Masonite International has higher revenue and earnings than Patrick Industries. Patrick Industries is trading at a lower price-to-earnings ratio than Masonite International, indicating that it is currently the more affordable of the two stocks.
This table compares Masonite International and Patrick Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Masonite International 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.
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.
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