Critical Review: Masonite International (NYSE:DOOR) and Fortune Brands Innovations (NYSE:FBIN)

Masonite International (NYSE:DOORGet Rating) and Fortune Brands Innovations (NYSE:FBINGet Rating) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

Masonite International has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares Masonite International and Fortune Brands Innovations’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masonite International $2.60 billion 0.73 $94.50 million $6.95 12.31
Fortune Brands Innovations $7.66 billion 1.06 $772.40 million $5.65 11.21

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

Insider & Institutional Ownership

98.7% of Masonite International shares are held by institutional investors. Comparatively, 85.5% of Fortune Brands Innovations shares are held by institutional investors. 1.0% of Masonite International shares are held by company insiders. Comparatively, 1.0% of Fortune Brands Innovations shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Masonite International 5.54% 34.45% 10.46%
Fortune Brands Innovations 9.35% 27.08% 9.84%

Analyst Ratings

This is a summary of recent ratings for Masonite International and Fortune Brands Innovations, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International 0 1 5 0 2.83
Fortune Brands Innovations 0 4 1 0 2.20

Masonite International currently has a consensus target price of $100.14, indicating a potential upside of 17.09%. Fortune Brands Innovations has a consensus target price of $59.00, indicating a potential downside of 6.81%. Given Masonite International’s stronger consensus rating and higher probable upside, research analysts plainly believe Masonite International is more favorable than Fortune Brands Innovations.

Summary

Masonite International beats Fortune Brands Innovations on 10 of the 14 factors compared between the two stocks.

About Masonite International

(Get Rating)

Masonite International Corporation designs, manufactures, markets, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide. It offers molded panel, flush, stile and rail, steel, and fiberglass residential doors, as well as medium-density fiberboard (MDF) and architectural interior doors. The company also provides various door components, including interior door facings, agri-fiber and particleboard door cores, MDF and wood cut-stock components, critical door components, and mineral and particleboard door cores. It offers its products under the Masonite, Premdor, Masonite Architectural, Marshfield-Algoma, USA Wood Door, Solidor, Residor, Nicedor, Door-Stop International, Harring Doors, National Hickman, Graham-Maiman, Louisiana Millwork, Baillargeon, and BWI to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors, and architects through wholesale, retail, and direct distribution channels. The company was founded in 1925 and is headquartered in Tampa, Florida.

About Fortune Brands Innovations

(Get Rating)

Fortune Brands Innovations, Inc. manufactures and supplies home and security products and services. The company operates through the following segments: Cabinets, Plumbing, Outdoors & Security. The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities, for the kitchen and bath. The Plumbing segment includes faucets, accessories, and kitchen sinks. The Outdoors & Security segment consists of fiberglass and steel entry door systems. The Security segment offers locks, safety and security devices, and electronic security products manufactured, sourced, and distributed under the Master Lock brand. Its brands include Master Lock security products, Masterbrand cabinets, Moen faucets, Simonton windows, and Therma-Tru entry door systems. The company was founded on June 9, 1988, and is headquartered in Deerfield, IL.

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