Continental Building Products (NYSE: CBPX) and Masco Corporation (NYSE:MAS) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
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 increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
98.4% of Continental Building Products shares are held by institutional investors. Comparatively, 89.2% of Masco Corporation shares are held by institutional investors. 0.3% of Continental Building Products shares are held by insiders. Comparatively, 1.3% of Masco Corporation 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.
Earnings and Valuation
This table compares Continental Building Products and Masco Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Continental Building Products||$474.02 million||1.78||$131.29 million||$1.09||20.09|
|Masco Corporation||$7.47 billion||1.55||$1.23 billion||$1.62||22.47|
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.
This is a breakdown of recent ratings for Continental Building Products and Masco Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||2||1||0||2.33|
Continental Building Products currently has a consensus target price of $26.50, indicating a potential upside of 21.00%. Masco Corporation has a consensus target price of $40.62, indicating a potential upside of 11.58%. Given Continental Building Products’ higher possible upside, research analysts plainly believe Continental Building Products is more favorable than Masco Corporation.
Risk and Volatility
Continental Building Products has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Masco Corporation has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
This table compares Continental Building Products and Masco Corporation’s 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%|
Masco Corporation beats Continental Building Products on 11 of the 17 factors compared between the two stocks.
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.
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.
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