MasterBrand (NYSE:MBC) vs. Owens Corning (NYSE:OC) Critical Review

Owens Corning (NYSE:OCGet Free Report) and MasterBrand (NYSE:MBCGet Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Risk and Volatility

Owens Corning has a beta of 1.32, meaning that its stock price is 32% 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.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Owens Corning $10.10 billion 0.97 -$522.00 million ($8.06) -15.35
MasterBrand $2.73 billion 0.49 $26.70 million ($0.69) -9.61

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

Analyst Ratings

This is a summary of recent ratings for Owens Corning and MasterBrand, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Owens Corning 1 5 9 3 2.78
MasterBrand 1 1 0 0 1.50

Owens Corning currently has a consensus target price of $164.15, suggesting a potential upside of 32.65%. MasterBrand has a consensus target price of $10.00, suggesting a potential upside of 50.74%. Given MasterBrand’s higher possible upside, analysts plainly believe MasterBrand is more favorable than Owens Corning.

Profitability

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

Net Margins Return on Equity Return on Assets
Owens Corning -6.81% 20.52% 6.21%
MasterBrand -3.49% 3.65% 1.60%

Insider and Institutional Ownership

88.4% of Owens Corning shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 0.9% of Owens Corning shares are owned by company insiders. Comparatively, 2.8% of MasterBrand shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Owens Corning beats MasterBrand on 8 of the 15 factors compared between the two stocks.

About Owens Corning

(Get Free Report)

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.

About MasterBrand

(Get Free Report)

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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