Contrasting MasterBrand (NYSE:MBC) and HomesToLife (NASDAQ:HTLM)

HomesToLife (NASDAQ:HTLM) and MasterBrand (NYSE:MBC) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

This table compares HomesToLife and MasterBrand”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomesToLife	$4.17 million	8.28	-$1.67 million	$0.04	58.75
MasterBrand	$2.70 billion	0.62	$125.90 million	$0.64	20.73

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 Ratings

This is a summary of recent ratings for HomesToLife and MasterBrand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomesToLife	1	0	0	0	1.00
MasterBrand	1	1	1	0	2.00

MasterBrand has a consensus target price of $15.00, suggesting a potential upside of 13.04%. Given MasterBrand’s stronger consensus rating and higher possible upside, analysts clearly believe MasterBrand is more favorable than HomesToLife.

Institutional and Insider Ownership

87.3% of MasterBrand shares are held by institutional investors. 2.0% of MasterBrand shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares HomesToLife and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomesToLife	N/A	N/A	N/A
MasterBrand	3.00%	10.88%	4.91%

Volatility and Risk

HomesToLife has a beta of -1.59, meaning that its stock price is 259% less volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Summary

MasterBrand beats HomesToLife on 12 of the 14 factors compared between the two stocks.

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.

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.