Griffon (NYSE:GFF – Get Free Report) and Fortune Brands Innovations (NYSE:FBIN – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Risk & Volatility
Griffon has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
Profitability
This table compares Griffon and Fortune Brands Innovations’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Griffon | 8.08% | 249.31% | 12.64% |
| Fortune Brands Innovations | 3.39% | 19.50% | 7.09% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Griffon | 0 | 0 | 2 | 2 | 3.50 |
| Fortune Brands Innovations | 1 | 10 | 6 | 1 | 2.39 |
Griffon presently has a consensus target price of $122.50, indicating a potential upside of 30.35%. Fortune Brands Innovations has a consensus target price of $52.93, indicating a potential upside of 37.56%. Given Fortune Brands Innovations’ higher possible upside, analysts clearly believe Fortune Brands Innovations is more favorable than Griffon.
Dividends
Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 0.9%. Fortune Brands Innovations pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. Griffon pays out 22.4% of its earnings in the form of a dividend. Fortune Brands Innovations pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Griffon has raised its dividend for 1 consecutive years and Fortune Brands Innovations has raised its dividend for 2 consecutive years. Fortune Brands Innovations is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Griffon and Fortune Brands Innovations”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Griffon | $2.52 billion | 1.69 | $51.11 million | $3.92 | 23.97 |
| Fortune Brands Innovations | $4.46 billion | 1.03 | $298.80 million | $1.23 | 31.28 |
Fortune Brands Innovations has higher revenue and earnings than Griffon. Griffon 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.
Insider & Institutional Ownership
73.2% of Griffon shares are owned by institutional investors. Comparatively, 87.6% of Fortune Brands Innovations shares are owned by institutional investors. 10.2% of Griffon shares are owned by insiders. Comparatively, 3.3% of Fortune Brands Innovations shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Griffon beats Fortune Brands Innovations on 10 of the 18 factors compared between the two stocks.
About Griffon
Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.
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.
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