Fortune Brands Innovations (NYSE:FBIN – Get Free Report) and Resideo Technologies (NYSE:REZI – Get Free Report) are both mid-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Risk & Volatility
Fortune Brands Innovations has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Profitability
This table compares Fortune Brands Innovations and Resideo Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortune Brands Innovations | 3.39% | 19.50% | 7.09% |
| Resideo Technologies | 5.37% | 17.79% | 5.13% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortune Brands Innovations | $4.46 billion | 1.08 | $298.80 million | $1.23 | 32.74 |
| Resideo Technologies | $7.47 billion | 0.38 | -$527.00 million | $2.26 | 8.38 |
Fortune Brands Innovations has higher earnings, but lower revenue than Resideo Technologies. Resideo Technologies 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 and Institutional Ownership
87.6% of Fortune Brands Innovations shares are held by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are held by institutional investors. 3.3% of Fortune Brands Innovations shares are held by insiders. Comparatively, 1.6% of Resideo Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Fortune Brands Innovations and Resideo Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortune Brands Innovations | 1 | 9 | 6 | 1 | 2.41 |
| Resideo Technologies | 1 | 2 | 2 | 0 | 2.20 |
Fortune Brands Innovations currently has a consensus target price of $55.43, indicating a potential upside of 37.62%. Resideo Technologies has a consensus target price of $37.50, indicating a potential upside of 98.07%. Given Resideo Technologies’ higher probable upside, analysts clearly believe Resideo Technologies is more favorable than Fortune Brands Innovations.
Summary
Fortune Brands Innovations beats Resideo Technologies on 9 of the 15 factors compared between the two stocks.
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 Resideo Technologies
Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.
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