Omega Flex (NASDAQ:OFLX) versus Masco (NASDAQ:MAS) Head-To-Head Analysis

Omega Flex (NASDAQ:OFLX) and Masco (NYSE:MAS) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

33.1% of Omega Flex shares are held by institutional investors. Comparatively, 89.7% of Masco shares are held by institutional investors. 45.0% of Omega Flex shares are held by insiders. Comparatively, 1.2% of Masco shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Omega Flex and Masco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omega Flex 16.06% 36.18% 24.95%
Masco 19.23% -1,729.19% 13.46%

Dividends

Omega Flex pays an annual dividend of $1.12 per share and has a dividend yield of 0.9%. Masco pays an annual dividend of $0.54 per share and has a dividend yield of 0.9%. Masco pays out 24.0% of its earnings in the form of a dividend. Omega Flex has raised its dividend for 2 consecutive years and Masco has raised its dividend for 6 consecutive years. Masco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Omega Flex has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Masco has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Earnings and Valuation

This table compares Omega Flex and Masco’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Omega Flex $111.36 million 11.77 $17.29 million N/A N/A
Masco $6.71 billion 2.31 $935.00 million $2.25 26.29

Masco has higher revenue and earnings than Omega Flex.

Analyst Recommendations

This is a summary of current ratings and target prices for Omega Flex and Masco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omega Flex 0 0 0 0 N/A
Masco 1 4 16 0 2.71

Masco has a consensus target price of $53.38, suggesting a potential downside of 9.76%. Given Masco’s higher possible upside, analysts plainly believe Masco is more favorable than Omega Flex.

Summary

Masco beats Omega Flex on 9 of the 15 factors compared between the two stocks.

About Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in the United States and internationally. It offers flexible gas piping for use in residential and commercial buildings, as well as its fittings; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, original equipment manufacturers, and direct sales, as well as through its Website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was founded in 1975 and is based in Exton, Pennsylvania.

About Masco

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, toilets, acrylic tubs, shower trays, spas, exercise pools, fitness systems, and other non-decorative plumbing products; brass, copper, and composite plumbing system components; and thermoplastic extrusions, extruded plastic profiles, and specialized fabrications. It offers its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HÜPPE, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment provides paints, primers, specialty coatings, stains, and waterproofing products; cabinet and door hardware; functional hardware, wall plates, hook and rail products, and picture hanging accessories; decorative bath hardware, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment offers its products under the BEHR, KILZ, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. The company's Cabinetry Products segment offers assembled cabinetry under the KRAFTMAID, CARDELL, MERILLAT, and QUALITY CABINETS brands. Its Windows and Other Specialty Products segment provides vinyl, fiberglass, and aluminum windows and patio doors under the MILGARD brand; and vinyl windows, composite, and panel doors, as well as related products and components under the DURAFLEX, GRIFFIN, PREMIER, and EVOLUTION brands. The company was founded in 1929 and is headquartered in Livonia, Michigan.

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