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 $16.2B against $9.3B — 1.7× the size. Masco Corporation trades at the lower P/E: 18.1× against 23.3×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 9.18% against 0.95%. Advanced Drainage Systems, Inc. has the higher net margin (12.4% vs 12.1%) and the lower return on invested capital (11.9% vs 35.2%). Both pay a dividend; Masco Corporation yields more (1.90% vs 0.62%). 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 18.13 23.33 23.33
P/S 2.14 2.85 2.09
P/B n/m 5.22 2.85
Price to free cash flow 15.53 16.89 18.42
EV/EBITDA 13.86 12.37 13.29
EV/Sales 2.48 3.34 2.28
Earnings yield 5.52% 4.29% 3.04%
Free cash flow yield 6.44% 5.92% 4.26%

Profitability

Metric MAS WMS Building Products & Equipment median
Gross margin 37.55% 38.36% 31.88%
Operating margin 17.92% 19.62% 7.18%
Net margin 12.05% 12.44% 4.11%
Free cash flow margin 13.78% 0.00% 6.41%
Return on equity (8,034.78%) 22.36% 5.95%
Return on assets 17.35% 9.49% 3.90%
Return on invested capital 35.17% 11.90% 5.54%

Growth

Metric MAS WMS Building Products & Equipment median
Revenue growth (TTM) 0.95% 9.18% 6.27%
EPS growth (last fiscal year) 2.66% (5.56%) (28.29%)
Revenue growth, 5-year CAGR 1.02% 9.00% 4.81%
Net income growth, 5-year CAGR (7.79%) 18.13% 0.00%

Health

Metric MAS WMS Building Products & Equipment median
Debt to equity (16.81) 0.97 0.55
Current ratio 1.83 2.13 1.83
Net debt to EBITDA 1.65 1.80 1.45

Dividend

Metric MAS WMS Building Products & Equipment median
Dividend yield 1.90% 0.62% 1.37%
Payout ratio 0.34 0.14 0.28

Size

Metric MAS WMS Building Products & Equipment median
Market cap 16.16b 9.25b 3.22b

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