Fortune Brands Innovations (NYSE:FBIN – Get Free Report) and Apogee Enterprises (NASDAQ:APOG – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Fortune Brands Innovations and Apogee Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortune Brands Innovations | 6.12% | 17.72% | 6.40% |
| Apogee Enterprises | 4.88% | 14.72% | 6.67% |
Volatility & Risk
Fortune Brands Innovations has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortune Brands Innovations | $4.46 billion | 1.32 | $298.80 million | $2.25 | 21.94 |
| Apogee Enterprises | $1.40 billion | 0.59 | $54.13 million | $3.19 | 12.41 |
Fortune Brands Innovations has higher revenue and earnings than Apogee Enterprises. Apogee Enterprises is trading at a lower price-to-earnings ratio than Fortune Brands Innovations, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Fortune Brands Innovations and Apogee Enterprises, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortune Brands Innovations | 2 | 9 | 5 | 0 | 2.19 |
| Apogee Enterprises | 0 | 1 | 2 | 1 | 3.00 |
Fortune Brands Innovations currently has a consensus target price of $54.62, suggesting a potential upside of 10.66%. Apogee Enterprises has a consensus target price of $70.50, suggesting a potential upside of 78.03%. Given Apogee Enterprises’ stronger consensus rating and higher probable upside, analysts clearly believe Apogee Enterprises is more favorable than Fortune Brands Innovations.
Insider and Institutional Ownership
87.6% of Fortune Brands Innovations shares are held by institutional investors. Comparatively, 94.1% of Apogee Enterprises shares are held by institutional investors. 3.3% of Fortune Brands Innovations shares are held by company insiders. Comparatively, 2.0% of Apogee Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Fortune Brands Innovations pays an annual dividend of $1.04 per share and has a dividend yield of 2.1%. Apogee Enterprises pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Fortune Brands Innovations pays out 46.2% of its earnings in the form of a dividend. Apogee Enterprises pays out 33.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fortune Brands Innovations has increased its dividend for 2 consecutive years and Apogee Enterprises has increased its dividend for 14 consecutive years. Apogee Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
About Fortune Brands Innovations
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.
About Apogee Enterprises
Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.
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