Critical Survey: Masco (NYSE:MAS) vs. CRH (NYSE:CRH)

Masco (NYSE:MAS) and CRH (NYSE:CRH) are both large-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings for Masco and CRH, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masco	0	11	5	1	2.41
CRH	0	2	9	1	2.92

Masco presently has a consensus price target of $74.1333, indicating a potential upside of 6.58%. CRH has a consensus price target of $112.8182, indicating a potential upside of 14.84%. Given CRH’s stronger consensus rating and higher probable upside, analysts clearly believe CRH is more favorable than Masco.

Insider and Institutional Ownership

93.9% of Masco shares are owned by institutional investors. Comparatively, 62.5% of CRH shares are owned by institutional investors. 0.5% of Masco shares are owned by insiders. Comparatively, 0.1% of CRH shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Masco has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, CRH has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Masco and CRH”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Masco	$7.83 billion	1.86	$822.00 million	$3.77	18.45
CRH	$35.80 billion	1.85	$3.46 billion	$4.72	20.81

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

Dividends

Masco pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. CRH pays an annual dividend of $1.11 per share and has a dividend yield of 1.1%. Masco pays out 32.9% of its earnings in the form of a dividend. CRH pays out 23.5% 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. Masco has raised its dividend for 12 consecutive years. Masco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Masco and CRH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Masco	10.51%	1,519.31%	17.10%
CRH	9.17%	15.88%	6.95%

Summary

CRH beats Masco on 9 of the 17 factors compared between the two stocks.

About Masco

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, sinks, toilets, acrylic tubs, shower trays, spas, exercise pools, and fitness systems; brass, copper, and composite plumbing system components; connected water products; thermoplastic solutions, extruded plastic profiles, specialized fabrications, and PEX tubing products; and other non-decorative plumbing products. This segment provides its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS, EASY DRAIN, STEAMIST, ELITESTEAM, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment offers paints, primers, specialty coatings, stains, and waterproofing products, as well as paint applicators and accessories; cabinet and door hardware, functional hardware, wall plates, hook and rail products, closet organization systems, and picture hanging accessories; decorative bath hardware, mirrors, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment provides its products under the BEHR, KILZ, WHIZZ, Elder & Jenks, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. It sells its products to the plumbing, heating, and hardware wholesalers; home centers and online retailers; hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and other mass merchandisers. Masco Corporation was incorporated in 1929 and is headquartered in Livonia, Michigan.

About CRH

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.