Masonite International Corporation (NYSE: DOOR) and Real Goods Solar (NASDAQ:RGSE) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Volatility and Risk
Masonite International Corporation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Real Goods Solar has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Masonite International Corporation and Real Goods Solar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Masonite International Corporation||0||2||6||0||2.75|
|Real Goods Solar||0||0||0||0||N/A|
Masonite International Corporation presently has a consensus target price of $75.00, suggesting a potential upside of 23.97%. Given Masonite International Corporation’s higher probable upside, analysts plainly believe Masonite International Corporation is more favorable than Real Goods Solar.
Earnings & Valuation
This table compares Masonite International Corporation and Real Goods Solar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Masonite International Corporation||$1.98 billion||0.90||$225.38 million||$3.19||18.97|
|Real Goods Solar||$14.24 million||0.37||-$12.00 million||($334.75)||0.00|
Masonite International Corporation has higher revenue and earnings than Real Goods Solar. Real Goods Solar is trading at a lower price-to-earnings ratio than Masonite International Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
97.9% of Masonite International Corporation shares are owned by institutional investors. Comparatively, 5.1% of Real Goods Solar shares are owned by institutional investors. 2.2% of Masonite International Corporation shares are owned by company insiders. Comparatively, 0.2% of Real Goods Solar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Masonite International Corporation and Real Goods Solar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Masonite International Corporation||4.95%||14.01%||6.36%|
|Real Goods Solar||-184.38%||-233.16%||-88.89%|
Masonite International Corporation beats Real Goods Solar on 11 of the 12 factors compared between the two stocks.
About Masonite International Corporation
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.
About Real Goods Solar
Real Goods Solar, Inc. is a residential and commercial solar energy engineering, procurement, and construction company. The Company offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals and warranty and customer satisfaction activities. Its solar energy systems use solar photovoltaic (PV) modules. The Company operates in three segments: Residential – the installation of solar systems for homeowners, including lease financing thereof, and for small businesses (small commercial) in the continental United States; Sunetric – the installation of solar systems for both homeowners and small business owners (small commercial) in Hawaii, and Other – retail store and corporate operations.
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