Reviewing Richelieu Hardware (OTCMKTS:RHUHF) and MasterBrand (NYSE:MBC)

Richelieu Hardware (OTCMKTS:RHUHF) and MasterBrand (NYSE:MBC) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Richelieu Hardware and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richelieu Hardware	N/A	N/A	N/A
MasterBrand	6.68%	17.24%	8.01%

Valuation & Earnings

This table compares Richelieu Hardware and MasterBrand’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richelieu Hardware	N/A	N/A	N/A	$2.47	11.60
MasterBrand	$2.73 billion	0.79	$182.00 million	$1.40	12.06

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

Analyst Ratings

This is a summary of current ratings and target prices for Richelieu Hardware and MasterBrand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richelieu Hardware	0	1	0	0	2.00
MasterBrand	0	0	1	0	3.00

Richelieu Hardware presently has a consensus price target of $47.00, indicating a potential upside of 64.16%. MasterBrand has a consensus price target of $15.00, indicating a potential downside of 11.14%. Given Richelieu Hardware’s higher probable upside, research analysts clearly believe Richelieu Hardware is more favorable than MasterBrand.

Insider and Institutional Ownership

62.6% of Richelieu Hardware shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 0.3% of MasterBrand shares are owned by company 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.

Summary

MasterBrand beats Richelieu Hardware on 9 of the 11 factors compared between the two stocks.

About Richelieu Hardware

Richelieu Hardware Ltd. manufactures, imports, and distributes specialty hardware and complementary products in Canada and the United States. The company's principal product categories include furniture, glass and building decorative, and functional hardware; lighting systems; finishing and decorating products; ergonomic workstation components; kitchen and closet storage solutions; sliding door systems; decorative and functional panels; high-pressure laminates; railing and balusters; floor protection products; and power tool accessories. It manufactures veneer sheets and edge banding products; various decorative moldings and components for the window and door industry; and custom products. The company serves kitchen and bathroom cabinet, storage and closet, home furnishing, and office furniture manufacturers; door and window manufacturers; residential and commercial woodworkers; and hardware retailers, such as renovation superstores. Richelieu Hardware Ltd. was founded in 1968 and is headquartered in Montreal, Canada.

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.