Quanex Building Products Corporation (NX) versus Masco Corporation (MAS) Head-To-Head Review
Quanex Building Products Corporation (NYSE: NX) and Masco Corporation (NYSE:MAS) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Quanex Building Products Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Masco Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Quanex Building Products Corporation pays out 42.1% of its earnings in the form of a dividend. Masco Corporation pays out 24.7% 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. Quanex Building Products Corporation has increased its dividend for 3 consecutive years. Masco Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Quanex Building Products Corporation has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Masco Corporation has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
This is a summary of current ratings for Quanex Building Products Corporation and Masco Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Quanex Building Products Corporation||0||0||2||0||3.00|
Quanex Building Products Corporation currently has a consensus target price of $24.00, suggesting a potential upside of 14.83%. Masco Corporation has a consensus target price of $40.77, suggesting a potential upside of 9.27%. Given Quanex Building Products Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Quanex Building Products Corporation is more favorable than Masco Corporation.
Insider and Institutional Ownership
99.8% of Quanex Building Products Corporation shares are held by institutional investors. Comparatively, 88.5% of Masco Corporation shares are held by institutional investors. 5.3% of Quanex Building Products Corporation shares are held by insiders. Comparatively, 1.3% of Masco Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Quanex Building Products Corporation and Masco Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Quanex Building Products Corporation||1.52%||7.87%||3.81%|
Valuation and Earnings
This table compares Quanex Building Products Corporation and Masco Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Quanex Building Products Corporation||$883.58 million||0.81||$95.14 million||$0.38||55.00|
|Masco Corporation||$7.47 billion||1.59||$1.23 billion||$1.62||23.03|
Masco Corporation has higher revenue and earnings than Quanex Building Products Corporation. Masco Corporation is trading at a lower price-to-earnings ratio than Quanex Building Products Corporation, indicating that it is currently the more affordable of the two stocks.
Masco Corporation beats Quanex Building Products Corporation on 11 of the 17 factors compared between the two stocks.
Quanex Building Products Corporation Company Profile
Quanex Building Products Corporation manufactures components for original equipment manufacturers (OEM) in the building products industry. The Company’s components can be categorized as window and door (fenestration) components, and kitchen and bath cabinet components. The Company operates through three segments: North American Engineered Components (NA Engineered Components), which consists of four operating segments primarily focused on the fenestration market in North America manufacturing vinyl profiles, insulating glass (IG) spacers, screens and other fenestration components; European Engineered Components (EU Engineered Components), which consists of the United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing IG spacers, and North American Cabinet Components (NA Cabinet Components), which consists of the North American cabinet door and components business.
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.
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