American Woodmark (NASDAQ:AMWD) vs. MasterBrand (NYSE:MBC) Head-To-Head Survey

MasterBrand (NYSE:MBC) and American Woodmark (NASDAQ:AMWD) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

87.3% of MasterBrand shares are held by institutional investors. Comparatively, 95.5% of American Woodmark shares are held by institutional investors. 1.4% of MasterBrand shares are held by insiders. Comparatively, 1.3% of American Woodmark shares are held 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.

Volatility & Risk

MasterBrand has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, American Woodmark has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MasterBrand and American Woodmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasterBrand	1	0	1	0	2.00
American Woodmark	1	1	2	0	2.25

MasterBrand presently has a consensus price target of $15.00, indicating a potential upside of 38.25%. American Woodmark has a consensus price target of $83.33, indicating a potential upside of 59.17%. Given American Woodmark’s stronger consensus rating and higher probable upside, analysts plainly believe American Woodmark is more favorable than MasterBrand.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MasterBrand	3.74%	12.60%	5.75%
American Woodmark	5.82%	11.09%	6.35%

Valuation and Earnings

This table compares MasterBrand and American Woodmark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MasterBrand	$2.70 billion	0.51	$125.90 million	$0.78	13.91
American Woodmark	$1.71 billion	0.45	$99.46 million	$6.48	8.08

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

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.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.