MasterBrand (NYSE:MBC – Get Free Report) and Leggett & Platt (NYSE:LEG – Get Free Report) are both small-cap consumer discretionary 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.
Institutional & Insider Ownership
87.3% of MasterBrand shares are held by institutional investors. Comparatively, 64.2% of Leggett & Platt shares are held by institutional investors. 2.0% of MasterBrand shares are held by company insiders. Comparatively, 2.1% of Leggett & Platt 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.
Risk & Volatility
MasterBrand has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Leggett & Platt has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MasterBrand | $2.70 billion | 0.63 | $125.90 million | $0.72 | 18.71 |
| Leggett & Platt | $4.38 billion | 0.30 | -$511.50 million | $1.03 | 9.34 |
MasterBrand has higher earnings, but lower revenue than Leggett & Platt. Leggett & Platt is trading at a lower price-to-earnings ratio than MasterBrand, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MasterBrand and Leggett & Platt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MasterBrand | 3.37% | 11.88% | 5.28% |
| Leggett & Platt | 3.36% | 19.42% | 3.96% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for MasterBrand and Leggett & Platt, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MasterBrand | 1 | 0 | 1 | 0 | 2.00 |
| Leggett & Platt | 1 | 3 | 0 | 0 | 1.75 |
MasterBrand currently has a consensus price target of $15.00, indicating a potential upside of 11.36%. Leggett & Platt has a consensus price target of $9.67, indicating a potential upside of 0.49%. Given MasterBrand’s stronger consensus rating and higher probable upside, analysts clearly believe MasterBrand is more favorable than Leggett & Platt.
Summary
MasterBrand beats Leggett & Platt on 10 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 Leggett & Platt
Leggett & Platt, Inc. engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The Bedding Products segment supplies products and components for the home, including mattress springs and specialty foam, as well as adjustable beds, bedding machinery, steel rod, and drawn wire. The Specialized Products segment supplies titanium, nickel, and stainless-steel tubing for the aerospace industry, and serves the construction market with its hydraulic cylinders group. The Flooring, Furniture & Textile Products segment produces an extensive line of components and engineered systems for office, residential, and contract furniture manufacturers. The company was founded by J. P. Products and C. B. Platt in 1883 and is headquartered in Carthage, MO.
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