Fortune Brands Innovations (NYSE:FBIN – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
87.6% of Fortune Brands Innovations shares are owned by institutional investors. 1.0% of Fortune Brands Innovations shares are owned by company insiders. Comparatively, 2.1% of Floor & Decor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Fortune Brands Innovations has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Fortune Brands Innovations | 9.42% | 20.96% | 7.50% |
| Floor & Decor | 4.53% | 9.32% | 3.95% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Fortune Brands Innovations and Floor & Decor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortune Brands Innovations | 0 | 7 | 5 | 0 | 2.42 |
| Floor & Decor | 2 | 10 | 6 | 0 | 2.22 |
Fortune Brands Innovations currently has a consensus target price of $77.17, indicating a potential upside of 53.92%. Floor & Decor has a consensus target price of $93.56, indicating a potential upside of 23.50%. Given Fortune Brands Innovations’ stronger consensus rating and higher possible upside, equities analysts plainly believe Fortune Brands Innovations is more favorable than Floor & Decor.
Valuation & Earnings
This table compares Fortune Brands Innovations and Floor & Decor”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortune Brands Innovations | $4.61 billion | 1.31 | $471.90 million | $3.41 | 14.70 |
| Floor & Decor | $4.46 billion | 1.83 | $205.87 million | $1.89 | 40.08 |
Fortune Brands Innovations has higher revenue and earnings than Floor & Decor. Fortune Brands Innovations is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.
Summary
Fortune Brands Innovations beats Floor & Decor on 9 of the 14 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 Floor & Decor
Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.
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