Masonite International (NYSE: DOOR) and PGT (NYSE:PGTI) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Risk and Volatility

Masonite International has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, PGT has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Masonite International and PGT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masonite International 0 4 6 0 2.60
PGT 0 2 5 0 2.71

Masonite International presently has a consensus target price of $75.80, suggesting a potential upside of 2.43%. PGT has a consensus target price of $16.67, suggesting a potential upside of 2.88%. Given PGT’s stronger consensus rating and higher possible upside, analysts clearly believe PGT is more favorable than Masonite International.

Earnings and Valuation

This table compares Masonite International and PGT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masonite International $1.97 billion 1.07 $98.62 million $3.16 23.42
PGT $458.55 million 1.75 $23.74 million $0.46 35.22

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

Insider and Institutional Ownership

92.4% of PGT shares are owned by institutional investors. 2.2% of Masonite International shares are owned by insiders. Comparatively, 6.1% of PGT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Masonite International and PGT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masonite International 4.75% 14.38% 6.33%
PGT 4.87% 19.02% 6.02%

Summary

PGT beats Masonite International on 8 of the 14 factors compared between the two stocks.

Masonite International Company Profile

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.

PGT Company Profile

PGT Innovations, Inc., formerly PGT, Inc., is a manufacturer of impact-resistant windows and doors. The Company’s brands include CGI, PGT Windows + Doors and WinDoor. CGI serves residential and commercial markets in both new and existing construction. CGI manufacturing and delivery facilities are based in Miami, Florida. PGT Custom Windows + Doors is a manufacturer and supplier of residential impact-resistant glass products. The Company’s manufacturing, glass plant, and delivery facilities are located in North Venice, Florida. WinDoor serves five-star resorts, luxury high-rise condominiums and mansions along the United States coastline. WinDoor’s aluminum and vinyl products come in an array of expansive sizes, custom colors, and configurations. WinDoor manufacturing and delivery facilities are based in Orlando, Florida.

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