MasterBrand (NYSE:MBC) vs. Griffon (NYSE:GFF) Head to Head Survey

Griffon (NYSE:GFF) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Griffon and MasterBrand, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	1	1	2	3.25
MasterBrand	1	1	0	0	1.50

Griffon currently has a consensus target price of $122.50, indicating a potential upside of 31.94%. MasterBrand has a consensus target price of $10.00, indicating a potential upside of 42.76%. Given MasterBrand’s higher probable upside, analysts clearly believe MasterBrand is more favorable than Griffon.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Griffon	8.08%	249.31%	12.64%
MasterBrand	-3.49%	3.65%	1.60%

Volatility & Risk

Griffon has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

73.2% of Griffon shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 10.2% of Griffon shares are owned by company insiders. Comparatively, 2.8% of MasterBrand shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Griffon and MasterBrand”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.56 billion	1.64	$51.11 million	$3.92	23.69
MasterBrand	$2.78 billion	0.51	$26.70 million	($0.69)	-10.15

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

Summary

Griffon beats MasterBrand on 12 of the 15 factors compared between the two stocks.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.

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.