Analyzing Carrier Global (NYSE:CARR) and MasterBrand (NYSE:MBC)

Carrier Global (NYSE:CARR) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Carrier Global and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carrier Global	5.52%	14.68%	5.51%
MasterBrand	-3.49%	3.65%	1.60%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Carrier Global and MasterBrand, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carrier Global	0	9	11	1	2.62
MasterBrand	1	1	0	0	1.50

Carrier Global currently has a consensus target price of $73.67, indicating a potential upside of 28.18%. MasterBrand has a consensus target price of $10.00, indicating a potential upside of 34.32%. Given MasterBrand’s higher probable upside, analysts clearly believe MasterBrand is more favorable than Carrier Global.

Valuation and Earnings

This table compares Carrier Global and MasterBrand”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carrier Global	$21.75 billion	2.18	$1.48 billion	$1.44	39.91
MasterBrand	$2.73 billion	0.55	$26.70 million	($0.69)	-10.79

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

Institutional & Insider Ownership

91.0% of Carrier Global shares are held by institutional investors. Comparatively, 87.3% of MasterBrand shares are held by institutional investors. 6.5% of Carrier Global shares are held by insiders. Comparatively, 2.8% of MasterBrand shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Carrier Global has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Summary

Carrier Global beats MasterBrand on 13 of the 15 factors compared between the two stocks.

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.

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.