Analyzing Masco (NYSE:MAS) and Omega Flex (NYSE:OFLX)

Masco (NYSE:MAS) and Omega Flex (NASDAQ:OFLX) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Risk and Volatility

Masco has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Omega Flex has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Masco and Omega Flex’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Masco $6.71 billion 2.31 $935.00 million $2.25 26.29
Omega Flex $111.36 million 11.77 $17.29 million N/A N/A

Masco has higher revenue and earnings than Omega Flex.

Profitability

This table compares Masco and Omega Flex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Masco 19.23% -1,729.19% 13.46%
Omega Flex 16.06% 36.18% 24.95%

Analyst Ratings

This is a summary of recent ratings and target prices for Masco and Omega Flex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Masco 1 4 16 0 2.71
Omega Flex 0 0 0 0 N/A

Masco currently has a consensus price target of $53.38, indicating a potential downside of 9.76%. Given Masco’s higher possible upside, equities research analysts clearly believe Masco is more favorable than Omega Flex.

Dividends

Masco pays an annual dividend of $0.54 per share and has a dividend yield of 0.9%. Omega Flex pays an annual dividend of $1.12 per share and has a dividend yield of 0.9%. Masco pays out 24.0% of its earnings in the form of a dividend. Masco has raised its dividend for 6 consecutive years and Omega Flex has raised its dividend for 2 consecutive years. Masco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

89.7% of Masco shares are owned by institutional investors. Comparatively, 33.1% of Omega Flex shares are owned by institutional investors. 1.2% of Masco shares are owned by insiders. Comparatively, 45.0% of Omega Flex shares are owned by 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

Masco beats Omega Flex on 9 of the 15 factors compared between the two stocks.

Masco Company Profile

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, toilets, acrylic tubs, shower trays, spas, exercise pools, fitness systems, and other non-decorative plumbing products; brass, copper, and composite plumbing system components; and thermoplastic extrusions, extruded plastic profiles, and specialized fabrications. It offers its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HÜPPE, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment provides paints, primers, specialty coatings, stains, and waterproofing products; cabinet and door hardware; functional hardware, wall plates, hook and rail products, and picture hanging accessories; decorative bath hardware, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment offers its products under the BEHR, KILZ, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. The company's Cabinetry Products segment offers assembled cabinetry under the KRAFTMAID, CARDELL, MERILLAT, and QUALITY CABINETS brands. Its Windows and Other Specialty Products segment provides vinyl, fiberglass, and aluminum windows and patio doors under the MILGARD brand; and vinyl windows, composite, and panel doors, as well as related products and components under the DURAFLEX, GRIFFIN, PREMIER, and EVOLUTION brands. The company was founded in 1929 and is headquartered in Livonia, Michigan.

Omega Flex Company Profile

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in the United States and internationally. It offers flexible gas piping for use in residential and commercial buildings, as well as its fittings; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, original equipment manufacturers, and direct sales, as well as through its Website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was founded in 1975 and is based in Exton, Pennsylvania.

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