Critical Analysis: Fortune Brands Innovations (FBIN) versus The Competition

Fortune Brands Innovations (NYSE:FBIN) is one of 14 publicly-traded companies in the “RETAIL – HOME FRN” industry, but how does it contrast to its competitors? We will compare Fortune Brands Innovations to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Valuation and Earnings

This table compares Fortune Brands Innovations and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fortune Brands Innovations	$4.61 billion	$471.90 million	15.09
Fortune Brands Innovations Competitors	$26.26 billion	$2.36 billion	16.47

Fortune Brands Innovations’ competitors have higher revenue and earnings than Fortune Brands Innovations. Fortune Brands Innovations is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Fortune Brands Innovations and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortune Brands Innovations	0	7	5	0	2.42
Fortune Brands Innovations Competitors	171	1316	2026	38	2.54

Fortune Brands Innovations presently has a consensus price target of $77.17, indicating a potential upside of 49.95%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 20.87%. Given Fortune Brands Innovations’ higher possible upside, equities analysts clearly believe Fortune Brands Innovations is more favorable than its competitors.

Institutional and Insider Ownership

87.6% of Fortune Brands Innovations shares are held by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are held by institutional investors. 1.0% of Fortune Brands Innovations shares are held by insiders. Comparatively, 5.2% of shares of all “RETAIL – HOME FRN” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Fortune Brands Innovations and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortune Brands Innovations	9.42%	20.96%	7.50%
Fortune Brands Innovations Competitors	6.52%	33.77%	8.67%

Dividends

Fortune Brands Innovations pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Fortune Brands Innovations pays out 29.3% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.5% and pay out 49.0% of their earnings in the form of a dividend. Fortune Brands Innovations has raised its dividend for 2 consecutive years.

Volatility and Risk

Fortune Brands Innovations has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations’ competitors have a beta of 1.48, indicating that their average share price is 48% more volatile than the S&P 500.

Summary

Fortune Brands Innovations competitors beat Fortune Brands Innovations on 11 of the 15 factors compared.

Fortune Brands Innovations Company Profile

Fortune Brands Innovations, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications in the United States and internationally. The company operates through three segments: Water, Outdoors, and Security. The Water segment manufactures or assembles, and sells faucets, accessories, kitchen sinks, and waste disposals under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek, and Schaub brands. The Outdoors segment manufactures and sells fiberglass and steel entry door systems under the Therma-Tru brand; storm, screen, and security doors under the Larson brand; composite decking, railing, and cladding under the Fiberon brand; and urethane millwork under the Fypon brand. The Security segment manufactures, sources, and distributes locks, safety and security devices, and electronic security products under the Master Lock, American Lock, Yale, and August brands; and fire-resistant safes, security containers, and commercial cabinets under the SentrySafe brand. The company sells its products through various sales channels, including kitchen and bath dealers, wholesalers oriented toward builders or professional remodelers, industrial and locksmith distributors, do-it-yourself remodeling-oriented home centers, showrooms, e-commerce, and other retail outlets. Fortune Brands Innovations, Inc. was incorporated in 1988 and is headquartered in Deerfield, Illinois.