Analyzing American Biltrite (OTCMKTS:ABLT) and Masco (NYSE:MAS)

American Biltrite (OTCMKTS:ABLT) and Masco (NYSE:MAS) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares American Biltrite and Masco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Biltrite	-4.16%	-34.23%	-6.13%
Masco	10.89%	1,317.38%	16.47%

Risk and Volatility

American Biltrite has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500. Comparatively, Masco has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

93.9% of Masco shares are held by institutional investors. 0.5% of Masco 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.

Analyst Recommendations

This is a breakdown of recent ratings for American Biltrite and Masco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Biltrite	0	0	0	0	0.00
Masco	0	13	6	1	2.40

Masco has a consensus price target of $73.20, suggesting a potential upside of 2.77%. Given Masco’s stronger consensus rating and higher probable upside, analysts plainly believe Masco is more favorable than American Biltrite.

Earnings & Valuation

This table compares American Biltrite and Masco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Biltrite	$188.74 million	0.01	-$2.64 million	($229.80)	-0.31
Masco	$7.83 billion	1.89	$822.00 million	$3.90	18.26

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

Summary

Masco beats American Biltrite on 15 of the 15 factors compared between the two stocks.

About American Biltrite

American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.

About Masco

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, sinks, toilets, acrylic tubs, shower trays, spas, exercise pools, and fitness systems; brass, copper, and composite plumbing system components; connected water products; thermoplastic solutions, extruded plastic profiles, specialized fabrications, and PEX tubing products; and other non-decorative plumbing products. This segment provides its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS, EASY DRAIN, STEAMIST, ELITESTEAM, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment offers paints, primers, specialty coatings, stains, and waterproofing products, as well as paint applicators and accessories; cabinet and door hardware, functional hardware, wall plates, hook and rail products, closet organization systems, and picture hanging accessories; decorative bath hardware, mirrors, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment provides its products under the BEHR, KILZ, WHIZZ, Elder & Jenks, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. It sells its products to the plumbing, heating, and hardware wholesalers; home centers and online retailers; hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and other mass merchandisers. Masco Corporation was incorporated in 1929 and is headquartered in Livonia, Michigan.