Critical Review: Fortune Brands Innovations (FBIN) vs. Its Peers

Fortune Brands Innovations (NYSE:FBIN) is one of 14 public companies in the “RETAIL – HOME FRN” industry, but how does it contrast to its competitors? We will compare Fortune Brands Innovations to related companies based on the strength of its institutional ownership, analyst recommendations, dividends, valuation, risk, profitability and earnings.

Institutional and Insider Ownership

87.6% of Fortune Brands Innovations shares are held by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are held by institutional investors. 1.0% of Fortune Brands Innovations shares are held by insiders. Comparatively, 5.0% of shares of all “RETAIL – HOME FRN” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fortune Brands Innovations and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortune Brands Innovations	0	6	5	0	2.45
Fortune Brands Innovations Competitors	173	1319	2030	38	2.54

Fortune Brands Innovations currently has a consensus target price of $77.27, suggesting a potential upside of 43.26%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 17.72%. Given Fortune Brands Innovations’ higher probable upside, equities research analysts plainly believe Fortune Brands Innovations is more favorable than its competitors.

Profitability

This table compares Fortune Brands Innovations and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortune Brands Innovations	9.42%	20.96%	7.50%
Fortune Brands Innovations Competitors	6.52%	33.77%	8.67%

Volatility & Risk

Fortune Brands Innovations has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations’ competitors have a beta of 1.46, meaning that their average share price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fortune Brands Innovations and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fortune Brands Innovations	$4.61 billion	$471.90 million	15.82
Fortune Brands Innovations Competitors	$26.26 billion	$2.36 billion	16.87

Fortune Brands Innovations’ competitors have higher revenue and earnings than Fortune Brands Innovations. Fortune Brands Innovations is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Fortune Brands Innovations pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Fortune Brands Innovations pays out 29.3% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.5% and pay out 49.0% of their earnings in the form of a dividend. Fortune Brands Innovations has increased its dividend for 2 consecutive years.

Summary

Fortune Brands Innovations competitors beat Fortune Brands Innovations on 11 of the 15 factors compared.

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.