Masco Corporation (MAS) vs Advanced Drainage Systems, Inc. (WMS)

Masco Corporation and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Masco Corporation is the larger, with a market value of $14.3B against $9.7B — 1.5× the size. Masco Corporation trades at the lower P/E: 16.8× against 21.9×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against −0.56%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs 11.6%) and the lower return on invested capital (12.3% vs 32.4%). Both pay a dividend; Masco Corporation yields more (1.74% vs 0.59%). Across the 22 metrics below, Masco Corporation leads on 13 and Advanced Drainage Systems, Inc. on 9.

Valuation

Metric MAS WMS Building Products & Equipment median
P/E 16.75 21.93 23.15
P/S 1.90 3.04 2.02
P/B n/m 5.38 2.81
Price to free cash flow 12.72 17.76 16.84
EV/EBITDA 12.85 12.63 12.85
EV/Sales 2.26 3.52 2.04
Earnings yield 5.97% 4.56% 2.76%
Free cash flow yield 7.86% 5.63% 4.23%

Profitability

Metric MAS WMS Building Products & Equipment median
Gross margin 36.96% 38.65% 29.19%
Operating margin 17.56% 20.74% 6.99%
Net margin 11.60% 14.00% 4.05%
Free cash flow margin 14.96% 17.10% 7.60%
Return on equity 5,893.33% 25.71% 9.28%
Return on assets 16.54% 10.71% 2.88%
Return on invested capital 32.43% 12.34% 5.16%

Growth

Metric MAS WMS Building Products & Equipment median
Revenue growth (TTM) (0.56%) 10.37% 3.11%
EPS growth (last fiscal year) 2.66% (5.56%) (34.13%)
Revenue growth, 5-year CAGR 1.02% 9.00% 5.37%
Net income growth, 5-year CAGR (7.79%) 18.13% 0.00%

Health

Metric MAS WMS Building Products & Equipment median
Debt to equity (27.50) 0.95 0.43
Current ratio 1.86 2.12 1.82
Net debt to EBITDA 1.65 1.80 0.98

Dividend

Metric MAS WMS Building Products & Equipment median
Dividend yield 1.74% 0.59% 1.43%
Payout ratio 0.29 0.13 0.29

Size

Metric MAS WMS Building Products & Equipment median
Market cap 14.31b 9.69b 1.17b

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