Critical Analysis: Jewett-Cameron Trading (NASDAQ:JCTC) and MasterBrand (NYSE:MBC)

MasterBrand (NYSE:MBC – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

87.3% of MasterBrand shares are held by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are held by institutional investors. 2.8% of MasterBrand shares are held by insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for MasterBrand and Jewett-Cameron Trading, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MasterBrand 1 2 0 0 1.67
Jewett-Cameron Trading 1 0 0 0 1.00

MasterBrand currently has a consensus target price of $8.00, suggesting a potential upside of 18.26%. Given MasterBrand’s stronger consensus rating and higher probable upside, equities analysts clearly believe MasterBrand is more favorable than Jewett-Cameron Trading.

Earnings & Valuation

This table compares MasterBrand and Jewett-Cameron Trading”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MasterBrand $2.73 billion 0.50 $26.70 million ($0.88) -7.69
Jewett-Cameron Trading $41.30 million 0.25 -$4.13 million ($2.35) -1.25

MasterBrand has higher revenue and earnings than Jewett-Cameron Trading. MasterBrand is trading at a lower price-to-earnings ratio than Jewett-Cameron Trading, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MasterBrand and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MasterBrand -3.49% 3.65% 1.60%
Jewett-Cameron Trading -20.94% -38.35% -29.29%

Risk and Volatility

MasterBrand has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Summary

MasterBrand beats Jewett-Cameron Trading on 12 of the 13 factors compared between the two stocks.

About MasterBrand

(Get Free Report)

MasterBrand, Inc. manufactures residential cabinets for kitchens, bathrooms and other areas of the home. Its products span a range of styles and price points and are sold under brands including Aristokraft, Omega, Schrock, KitchenCraft, Decora, Diamond and Mantra. The company serves customers primarily in the United States and Canada through channels that include independent dealers, home improvement retailers and homebuilders. Its offerings include cabinetry and related products for both new construction and home remodeling projects.

About Jewett-Cameron Trading

(Get Free Report)

Jewett-Cameron Trading Company, Ltd. (NASDAQ: JCTC) develops, manufactures and distributes specialty products for agricultural, industrial, pet and outdoor applications. The company sells products through retail, wholesale and e-commerce channels, serving customers primarily in the United States and Canada. Its product portfolio includes fencing and containment systems, kennel and pet products, garden and landscaping supplies, tree supports, stakes, industrial wood products and related outdoor products.

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