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

Profitability

This table compares Masonite International and Patrick Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masonite International 4.75% 14.38% 6.33%
Patrick Industries 4.73% 24.60% 11.00%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Masonite International and Patrick Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International 0 4 6 0 2.60
Patrick Industries 0 1 2 0 2.67

Masonite International currently has a consensus price target of $75.80, indicating a potential upside of 6.76%. Patrick Industries has a consensus price target of $80.67, indicating a potential downside of 17.09%. Given Masonite International’s higher probable upside, analysts clearly believe Masonite International is more favorable than Patrick Industries.

Risk & Volatility

Masonite International has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

89.3% of Patrick Industries shares are held by institutional investors. 2.2% of Masonite International shares are held by company insiders. Comparatively, 5.2% of Patrick Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Masonite International and Patrick Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masonite International $1.97 billion 1.02 $98.62 million $3.18 22.33
Patrick Industries $1.22 billion 1.34 $55.57 million $4.37 22.27

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

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.

Patrick Industries Company Profile

Patrick Industries, Inc. is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The Company’s segments include Manufacturing and Distribution. It manufactures a range of products, which include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass and plastic component products including front and rear caps and marine helms, interior passage doors, RV painting, and slotwall panels and components, among others.

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