Patrick Industries (NASDAQ: PATK) and Masonite International (NYSE:DOOR) are both doors & window frames companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
59.5% of Patrick Industries shares are held by institutional investors. 5.2% of Patrick Industries shares are held by insiders. Comparatively, 2.2% of Masonite International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Patrick Industries has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Masonite International has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
This table compares Patrick Industries and Masonite International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Patrick Industries and Masonite International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Patrick Industries||$1.22 billion||1.43||$55.57 million||$2.96||23.46|
|Masonite International||$1.97 billion||1.07||$98.62 million||$3.16||23.47|
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 is a summary of current ratings for Patrick Industries and Masonite International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Patrick Industries currently has a consensus price target of $70.00, suggesting a potential upside of 0.79%. Masonite International has a consensus price target of $75.56, suggesting a potential upside of 1.90%. Given Masonite International’s higher probable upside, analysts clearly believe Masonite International is more favorable than Patrick Industries.
Masonite International beats Patrick Industries on 8 of the 14 factors compared between the two stocks.
About Patrick Industries
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.
About Masonite International
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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