Critical Survey: Zurn Elkay Water Solutions Cor (NYSE:ZWS) vs. Masco (NYSE:MAS)

Masco (NYSE:MAS) and Zurn Elkay Water Solutions Cor (NYSE:ZWS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares Masco and Zurn Elkay Water Solutions Cor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Masco	11.61%	2,379.08%	17.21%
Zurn Elkay Water Solutions Cor	15.45%	18.01%	10.74%

Dividends

Masco pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Zurn Elkay Water Solutions Cor pays an annual dividend of $0.44 per share and has a dividend yield of 0.9%. Masco pays out 29.4% of its earnings in the form of a dividend. Zurn Elkay Water Solutions Cor pays out 27.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Masco has raised its dividend for 12 consecutive years and Zurn Elkay Water Solutions Cor has raised its dividend for 3 consecutive years. Masco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

93.9% of Masco shares are held by institutional investors. Comparatively, 83.3% of Zurn Elkay Water Solutions Cor shares are held by institutional investors. 0.5% of Masco shares are held by insiders. Comparatively, 2.4% of Zurn Elkay Water Solutions Cor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Masco and Zurn Elkay Water Solutions Cor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masco	1	9	7	1	2.44
Zurn Elkay Water Solutions Cor	0	3	5	1	2.78

Masco currently has a consensus target price of $79.87, indicating a potential upside of 7.16%. Zurn Elkay Water Solutions Cor has a consensus target price of $57.22, indicating a potential upside of 11.98%. Given Zurn Elkay Water Solutions Cor’s stronger consensus rating and higher possible upside, analysts plainly believe Zurn Elkay Water Solutions Cor is more favorable than Masco.

Volatility and Risk

Masco has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Zurn Elkay Water Solutions Cor has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Masco and Zurn Elkay Water Solutions Cor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Masco	$7.62 billion	1.93	$810.00 million	$4.35	17.13
Zurn Elkay Water Solutions Cor	$1.79 billion	4.74	$198.00 million	$1.62	31.54

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

Summary

Masco beats Zurn Elkay Water Solutions Cor on 10 of the 17 factors compared between the two stocks.

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.

About Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, thermostatic mixing valves, PEX pipings, fittings, and installation tools under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, chemical drainage systems; and interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn and Green Turtle brands. In addition, it develops, manufactures, and markets remote tank monitoring devices, alarms, software, and services. Further, the company offers sensor-operated flush valves under the AquaSense, Aquaflush, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks and plumbing fixtures, and various types of sinks, as well as drinking water dispensing and filtration products under the Elkay and Halsey Taylor brands. It distributes to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was incorporated in 1892 and is headquartered in Milwaukee, Wisconsin.