Critical Survey: Masonite International (DOOR) & PGT Innovations (PGTI)

PGT Innovations (NYSE: PGTI) and Masonite International (NYSE:DOOR) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

PGT Innovations has a beta of 1.21, meaning that its stock price is 21% more 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.

Insider and Institutional Ownership

92.4% of PGT Innovations shares are owned by institutional investors. 6.1% of PGT Innovations shares are owned by company insiders. Comparatively, 2.2% of Masonite International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PGT Innovations and Masonite International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PGT Innovations 4.87% 19.02% 6.02%
Masonite International 4.75% 14.38% 6.33%

Analyst Recommendations

This is a summary of recent ratings and target prices for PGT Innovations and Masonite International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PGT Innovations 0 2 5 0 2.71
Masonite International 0 4 6 0 2.60

PGT Innovations currently has a consensus price target of $16.67, indicating a potential upside of 2.56%. Masonite International has a consensus price target of $75.80, indicating a potential upside of 6.39%. Given Masonite International’s higher possible upside, analysts clearly believe Masonite International is more favorable than PGT Innovations.

Valuation & Earnings

This table compares PGT Innovations 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
PGT Innovations $458.55 million 1.76 $23.74 million $0.46 35.33
Masonite International $1.97 billion 1.03 $98.62 million $3.16 22.55

Masonite International has higher revenue and earnings than PGT Innovations. Masonite International is trading at a lower price-to-earnings ratio than PGT Innovations, indicating that it is currently the more affordable of the two stocks.

PGT Innovations Company Profile

PGT Innovations, Inc., formerly PGT, Inc., is a manufacturer of impact-resistant windows and doors. The Company’s brands include CGI, PGT Windows + Doors and WinDoor. CGI serves residential and commercial markets in both new and existing construction. CGI manufacturing and delivery facilities are based in Miami, Florida. PGT Custom Windows + Doors is a manufacturer and supplier of residential impact-resistant glass products. The Company’s manufacturing, glass plant, and delivery facilities are located in North Venice, Florida. WinDoor serves five-star resorts, luxury high-rise condominiums and mansions along the United States coastline. WinDoor’s aluminum and vinyl products come in an array of expansive sizes, custom colors, and configurations. WinDoor manufacturing and delivery facilities are based in Orlando, Florida.

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.

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