MasterBrand (NYSE:MBC – Get Free Report) and HomesToLife (NASDAQ:HTLM – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Risk and Volatility
MasterBrand has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, HomesToLife has a beta of -1.59, meaning that its share price is 259% less volatile than the S&P 500.
Valuation & Earnings
This table compares MasterBrand and HomesToLife”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MasterBrand | $2.70 billion | 0.64 | $125.90 million | $0.64 | 21.25 |
| HomesToLife | $4.17 million | 9.09 | -$1.67 million | $0.04 | 64.50 |
MasterBrand has higher revenue and earnings than HomesToLife. MasterBrand is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for MasterBrand and HomesToLife, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MasterBrand | 1 | 1 | 1 | 0 | 2.00 |
| HomesToLife | 1 | 0 | 0 | 0 | 1.00 |
MasterBrand currently has a consensus target price of $15.00, indicating a potential upside of 10.29%. Given MasterBrand’s stronger consensus rating and higher possible upside, equities analysts plainly believe MasterBrand is more favorable than HomesToLife.
Insider and Institutional Ownership
87.3% of MasterBrand shares are held by institutional investors. 2.0% of MasterBrand shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares MasterBrand and HomesToLife’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MasterBrand | 3.00% | 10.88% | 4.91% |
| HomesToLife | N/A | N/A | N/A |
Summary
MasterBrand beats HomesToLife on 12 of the 14 factors compared between the two stocks.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
About HomesToLife
HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.
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