Jewett-Cameron Trading (NASDAQ:JCTC) versus MasterBrand (NYSE:MBC) Critical Analysis

MasterBrand (NYSE:MBC – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares MasterBrand and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MasterBrand -3.99% 2.11% 0.91%
Jewett-Cameron Trading -20.94% -38.35% -29.29%

Insider and Institutional Ownership

87.3% of MasterBrand shares are held by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are held by institutional investors. 2.8% of MasterBrand shares are held by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares MasterBrand and Jewett-Cameron Trading”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MasterBrand $2.73 billion 0.51 $26.70 million ($0.69) -9.84
Jewett-Cameron Trading $41.30 million 0.24 -$4.13 million ($2.35) -1.21

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

Analyst Ratings

This is a summary of recent ratings for MasterBrand and Jewett-Cameron Trading, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MasterBrand 1 2 0 0 1.67
Jewett-Cameron Trading 1 0 0 0 1.00

MasterBrand currently has a consensus target price of $8.00, indicating a potential upside of 17.87%. Given MasterBrand’s stronger consensus rating and higher probable upside, analysts clearly believe MasterBrand is more favorable than Jewett-Cameron Trading.

Risk and Volatility

MasterBrand has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Summary

MasterBrand beats Jewett-Cameron Trading on 12 of the 13 factors compared between the two stocks.

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.

About Jewett-Cameron Trading

(Get Free Report)

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.

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