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 $16.2B against $7.1B — 2.3× the size. Masco Corporation trades at the lower P/E: 18.1× against 176×. Masco Corporation grew revenue faster over the last twelve months: 0.95% against −8.25%. Masco Corporation has the higher net margin (12.1% vs 0.28%) and the higher return on invested capital (35.2% vs 2.21%). 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 176.44 18.13 23.33
P/S 0.49 2.14 2.09
P/B 1.73 n/m 2.85
Price to free cash flow 27.13 15.53 18.42
EV/EBITDA 12.84 13.86 13.29
EV/Sales 0.81 2.48 2.28
Earnings yield 0.57% 5.52% 3.04%
Free cash flow yield 3.69% 6.44% 4.26%

Profitability

Metric BLDR MAS Building Products & Equipment median
Gross margin 28.48% 37.55% 31.88%
Operating margin 2.13% 17.92% 7.18%
Net margin 0.28% 12.05% 4.11%
Free cash flow margin 1.81% 13.78% 6.41%
Return on equity 0.97% (8,034.78%) 5.95%
Return on assets 0.36% 17.35% 3.90%
Return on invested capital 2.21% 35.17% 5.54%

Growth

Metric BLDR MAS Building Products & Equipment median
Revenue growth (TTM) (8.25%) 0.95% 6.27%
EPS growth (last fiscal year) (57.06%) 2.66% (28.29%)
Revenue growth, 5-year CAGR 12.16% 1.02% 4.81%
Net income growth, 5-year CAGR 6.78% (7.79%) 0.00%

Health

Metric BLDR MAS Building Products & Equipment median
Debt to equity 1.13 (16.81) 0.55
Current ratio 1.85 1.83 1.83
Net debt to EBITDA 3.09 1.65 1.45

Dividend

Metric BLDR MAS Building Products & Equipment median
Dividend yield — 1.90% 1.37%
Payout ratio — 0.34 0.28

Size

Metric BLDR MAS Building Products & Equipment median
Market cap 7.05b 16.16b 3.22b

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