Masonite International Corporation (NYSE: DOOR) and Real Goods Solar (NASDAQ:RGSE) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitabiliy and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Masonite International Corporation and Real Goods Solar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International Corporation 0 0 8 0 3.00
Real Goods Solar 0 0 0 0 N/A

Masonite International Corporation presently has a consensus price target of $78.63, indicating a potential upside of 2.51%. Given Masonite International Corporation’s higher possible upside, equities research analysts plainly believe Masonite International Corporation is more favorable than Real Goods Solar.

Insider and Institutional Ownership

98.0% of Masonite International Corporation shares are owned by institutional investors. Comparatively, 5.8% of Real Goods Solar shares are owned by institutional investors. 2.2% of Masonite International Corporation shares are owned by company insiders. Comparatively, 0.2% of Real Goods Solar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Masonite International Corporation and Real Goods Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masonite International Corporation 5.29% 14.73% 6.72%
Real Goods Solar -159.31% -575.03% -85.04%

Risk & Volatility

Masonite International Corporation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Real Goods Solar has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.

Earnings and Valuation

This table compares Masonite International Corporation and Real Goods Solar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Masonite International Corporation $1.97 billion 1.16 $224.26 million $3.36 22.83
Real Goods Solar $16.14 million 0.42 -$10.95 million ($496.98) 0.00

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

Summary

Masonite International Corporation beats Real Goods Solar on 11 of the 12 factors compared between the two stocks.

About Masonite International Corporation

Masonite International Corporation is designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling, and the non-residential building construction markets. The Company principally operates in North America; Europe, Asia and Latin America, and Africa. The Company markets and sells its products to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors and architects through wholesale and retail distribution channels. Its portfolio of brands includes Masonite, Marshfield, Premdor, Mohawk, Megantic, Algoma, Baillargeon, Birchwood Best and Lemieux. In February 2014, Masonite International Corporation completed the acquisition of Door-Stop International Limited.

About Real Goods Solar

Real Goods Solar, Inc. is a residential and commercial solar energy engineering, procurement, and construction company. The Company offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals and warranty and customer satisfaction activities. Its solar energy systems use solar photovoltaic (PV) modules. The Company operates in three segments: Residential – the installation of solar systems for homeowners, including lease financing thereof, and for small businesses (small commercial) in the continental United States; Sunetric – the installation of solar systems for both homeowners and small business owners (small commercial) in Hawaii, and Other – retail store and corporate operations.

Receive News & Ratings for Masonite International Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Masonite International Corporation and related companies with MarketBeat.com's FREE daily email newsletter.