Contrasting Latham Group (NASDAQ:SWIM) & Masco (NYSE:MAS)

Latham Group (NASDAQ:SWIM) and Masco (NYSE:MAS) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

84.0% of Latham Group shares are owned by institutional investors. Comparatively, 93.9% of Masco shares are owned by institutional investors. 3.3% of Latham Group shares are owned by company insiders. Comparatively, 0.6% of Masco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Latham Group and Masco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$545.91 million	1.14	$11.12 million	$0.07	75.43
Masco	$7.56 billion	1.88	$810.00 million	$4.03	17.45

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

Analyst Recommendations

This is a summary of recent recommendations for Latham Group and Masco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	3	2	0	2.00
Masco	1	11	7	0	2.32

Latham Group currently has a consensus price target of $7.50, indicating a potential upside of 42.05%. Masco has a consensus price target of $80.07, indicating a potential upside of 13.86%. Given Latham Group’s higher probable upside, equities analysts clearly believe Latham Group is more favorable than Masco.

Profitability

This table compares Latham Group and Masco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latham Group	1.55%	2.13%	1.02%
Masco	10.90%	815.20%	16.32%

Risk & Volatility

Latham Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Masco has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Masco beats Latham Group on 10 of the 14 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

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.