Masco Corporation (NYSE: MAS) and Valmont Industries (NYSE:VMI) are both mid-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, risk, valuation and analyst recommendations.
This table compares Masco Corporation and Valmont Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
89.5% of Masco Corporation shares are held by institutional investors. Comparatively, 84.4% of Valmont Industries shares are held by institutional investors. 1.3% of Masco Corporation shares are held by insiders. Comparatively, 3.3% of Valmont Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Masco Corporation and Valmont Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Masco Corporation presently has a consensus target price of $39.75, indicating a potential upside of 3.43%. Valmont Industries has a consensus target price of $170.00, indicating a potential upside of 12.66%. Given Valmont Industries’ higher probable upside, analysts clearly believe Valmont Industries is more favorable than Masco Corporation.
Masco Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 1.0%. Masco Corporation pays out 25.3% of its earnings in the form of a dividend. Valmont Industries pays out 19.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Valmont Industries has raised its dividend for 3 consecutive years.
Valuation & Earnings
This table compares Masco Corporation and Valmont Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Masco Corporation||$7.41 billion||1.66||$1.20 billion||$1.58||24.32|
|Valmont Industries||$2.56 billion||1.33||$337.47 million||$7.91||19.08|
Masco Corporation has higher revenue and earnings than Valmont Industries. Valmont Industries is trading at a lower price-to-earnings ratio than Masco Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Masco Corporation has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Valmont Industries has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Masco Corporation beats Valmont Industries on 12 of the 17 factors compared between the two stocks.
Masco Corporation Company Profile
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.
Valmont Industries Company Profile
Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.
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