Reviewing MasterBrand (NYSE:MBC) & Watts Water Technologies (NYSE:WTS)

Watts Water Technologies (NYSE:WTS) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares Watts Water Technologies and MasterBrand”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Watts Water Technologies	$2.44 billion	4.87	$340.80 million	$11.45	31.04
MasterBrand	$2.73 billion	0.61	$26.70 million	($0.69)	-11.81

Watts Water Technologies has higher earnings, but lower revenue than MasterBrand. MasterBrand is trading at a lower price-to-earnings ratio than Watts Water Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.0% of Watts Water Technologies shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 1.0% of Watts Water Technologies shares are owned by insiders. Comparatively, 2.8% of MasterBrand shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Watts Water Technologies has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares Watts Water Technologies and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Watts Water Technologies	14.34%	19.16%	13.78%
MasterBrand	-3.49%	3.65%	1.60%

Analyst Recommendations

This is a summary of current ratings and price targets for Watts Water Technologies and MasterBrand, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Watts Water Technologies	0	6	5	0	2.45
MasterBrand	1	1	0	0	1.50

Watts Water Technologies presently has a consensus price target of $367.70, indicating a potential upside of 3.45%. MasterBrand has a consensus price target of $10.00, indicating a potential upside of 22.70%. Given MasterBrand’s higher probable upside, analysts clearly believe MasterBrand is more favorable than Watts Water Technologies.

Summary

Watts Water Technologies beats MasterBrand on 10 of the 14 factors compared between the two stocks.

About Watts Water Technologies

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial, marine, and residential applications. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

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.