Resideo Technologies (NYSE:REZI) and Fortune Brands Home & Security (NYSE:FBHS) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Resideo Technologies and Fortune Brands Home & Security, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Resideo Technologies | 0 | 2 | 4 | 0 | 2.67 |
Fortune Brands Home & Security | 1 | 4 | 10 | 0 | 2.60 |
Resideo Technologies presently has a consensus price target of $23.25, indicating a potential downside of 3.21%. Fortune Brands Home & Security has a consensus price target of $87.4375, indicating a potential upside of 5.17%. Given Fortune Brands Home & Security's higher possible upside, analysts clearly believe Fortune Brands Home & Security is more favorable than Resideo Technologies.
Insider & Institutional Ownership
91.4% of Resideo Technologies shares are owned by institutional investors. Comparatively, 86.6% of Fortune Brands Home & Security shares are owned by institutional investors. 0.1% of Resideo Technologies shares are owned by company insiders. Comparatively, 1.5% of Fortune Brands Home & Security shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Resideo Technologies and Fortune Brands Home & Security's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Resideo Technologies | -0.64% | 11.12% | 3.32% |
Fortune Brands Home & Security | 8.36% | 22.37% | 8.68% |
Volatility & Risk
Resideo Technologies has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500. Comparatively, Fortune Brands Home & Security has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
Valuation & Earnings
This table compares Resideo Technologies and Fortune Brands Home & Security's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Resideo Technologies | $4.99 billion | 0.59 | $36 million | $1.10 | 21.84 |
Fortune Brands Home & Security | $5.76 billion | 2.00 | $431.90 million | $3.60 | 23.09 |
Fortune Brands Home & Security has higher revenue and earnings than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Fortune Brands Home & Security, indicating that it is currently the more affordable of the two stocks.
Summary
Fortune Brands Home & Security beats Resideo Technologies on 11 of the 14 factors compared between the two stocks.