Builders FirstSource, Inc. (BLDR) vs Masco Corporation (MAS)

Builders FirstSource, Inc. and Masco Corporation are both Building Products & Equipment companies. Masco Corporation is the larger, with a market value of $13.3B against $6.3B — 2.1× the size. Masco Corporation trades at the lower P/E: 15.8× against 64.3×. Masco Corporation grew revenue faster over the last twelve months: −0.56% against −9.38%. Masco Corporation has the higher net margin (11.6% vs 0.71%) and the higher return on invested capital (32.4% vs 3.19%). Across the 21 metrics below, Masco Corporation leads on 14 and Builders FirstSource, Inc. on 7.

Valuation

Metric BLDR MAS Building Products & Equipment median
P/E 64.32 15.83 24.54
P/S 0.44 1.80 2.00
P/B 1.59 n/m 3.02
Price to free cash flow 9.81 12.02 18.49
EV/EBITDA 10.54 12.26 12.63
EV/Sales 0.75 2.15 2.14
Earnings yield 1.55% 6.32% 2.74%
Free cash flow yield 10.20% 8.32% 3.58%

Profitability

Metric BLDR MAS Building Products & Equipment median
Gross margin 29.19% 36.96% 29.19%
Operating margin 3.01% 17.56% 6.84%
Net margin 0.71% 11.60% 4.05%
Free cash flow margin 4.49% 14.96% 8.72%
Return on equity 2.51% 5,893.33% 9.28%
Return on assets 0.90% 16.54% 2.88%
Return on invested capital 3.19% 32.43% 5.16%

Growth

Metric BLDR MAS Building Products & Equipment median
Revenue growth (TTM) (9.38%) (0.56%) 3.11%
EPS growth (last fiscal year) (57.06%) 2.66% —
Revenue growth, 5-year CAGR 12.16% 1.02% 5.37%
Net income growth, 5-year CAGR 6.78% (7.79%) 0.00%

Health

Metric BLDR MAS Building Products & Equipment median
Debt to equity 1.15 (27.50) 0.43
Current ratio 1.79 1.86 1.82
Net debt to EBITDA 3.09 1.65 0.98

Dividend

Metric BLDR MAS Building Products & Equipment median
Dividend yield — 1.60% 1.20%
Payout ratio 0.00 0.32 0.04

Size

Metric BLDR MAS Building Products & Equipment median
Market cap 6.30b 13.27b 1.18b

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