Caesarstone (NASDAQ:CSTE – Get Free Report) and MasterBrand (NYSE:MBC – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Profitability
This table compares Caesarstone and MasterBrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesarstone | -37.37% | -32.36% | -11.71% |
| MasterBrand | -3.49% | 3.65% | 1.60% |
Earnings and Valuation
This table compares Caesarstone and MasterBrand”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesarstone | $397.23 million | 0.28 | -$137.47 million | ($4.13) | -0.77 |
| MasterBrand | $2.73 billion | 0.55 | $26.70 million | ($0.69) | -10.76 |
MasterBrand has higher revenue and earnings than Caesarstone. MasterBrand is trading at a lower price-to-earnings ratio than Caesarstone, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Caesarstone and MasterBrand, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
| MasterBrand | 1 | 1 | 0 | 0 | 1.50 |
MasterBrand has a consensus target price of $10.00, suggesting a potential upside of 34.68%. Given MasterBrand’s stronger consensus rating and higher possible upside, analysts plainly believe MasterBrand is more favorable than Caesarstone.
Volatility and Risk
Caesarstone has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Insider and Institutional Ownership
33.7% of Caesarstone shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 2.8% of MasterBrand shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
MasterBrand beats Caesarstone on 12 of the 13 factors compared between the two stocks.
About Caesarstone
Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
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.
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