Caesarstone (NASDAQ:CSTE – Get Free Report) and MasterBrand (NYSE:MBC – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk & Volatility
Caesarstone has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Profitability
This table compares Caesarstone and MasterBrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesarstone | -37.37% | -32.36% | -11.71% |
| MasterBrand | -3.49% | 3.65% | 1.60% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesarstone | $381.81 million | 0.27 | -$137.47 million | ($4.13) | -0.73 |
| MasterBrand | $2.78 billion | 0.47 | $26.70 million | ($0.69) | -9.28 |
MasterBrand has higher revenue and earnings than Caesarstone. MasterBrand is trading at a lower price-to-earnings ratio than Caesarstone, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Caesarstone and MasterBrand, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
| MasterBrand | 1 | 1 | 0 | 0 | 1.50 |
MasterBrand has a consensus price target of $10.00, suggesting a potential upside of 56.18%. Given MasterBrand’s stronger consensus rating and higher possible upside, analysts plainly believe MasterBrand is more favorable than Caesarstone.
Insider and Institutional Ownership
33.7% of Caesarstone shares are held by institutional investors. Comparatively, 87.3% of MasterBrand shares are held by institutional investors. 2.8% of MasterBrand shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
MasterBrand beats Caesarstone on 12 of the 13 factors compared between the two stocks.
About Caesarstone
Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
Receive News & Ratings for Caesarstone Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Caesarstone and related companies with MarketBeat.com's FREE daily email newsletter.
