Fortune Brands Innovations (NYSE:FBIN – Get Free Report) and Brand House Collective (NASDAQ:TBHC – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Profitability
This table compares Fortune Brands Innovations and Brand House Collective’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortune Brands Innovations | 8.75% | 19.85% | 7.13% |
| Brand House Collective | -7.56% | N/A | -10.22% |
Volatility and Risk
Fortune Brands Innovations has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Brand House Collective has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortune Brands Innovations | 0 | 6 | 5 | 0 | 2.45 |
| Brand House Collective | 0 | 0 | 1 | 1 | 3.50 |
Fortune Brands Innovations presently has a consensus price target of $75.45, suggesting a potential upside of 41.61%. Brand House Collective has a consensus price target of $7.00, suggesting a potential upside of 321.69%. Given Brand House Collective’s stronger consensus rating and higher probable upside, analysts clearly believe Brand House Collective is more favorable than Fortune Brands Innovations.
Valuation and Earnings
This table compares Fortune Brands Innovations and Brand House Collective”s top-line 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 | 1.39 | $471.90 million | $3.18 | 16.76 |
| Brand House Collective | $441.36 million | 0.08 | -$23.13 million | ($1.52) | -1.09 |
Fortune Brands Innovations has higher revenue and earnings than Brand House Collective. Brand House Collective 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.
Institutional & Insider Ownership
87.6% of Fortune Brands Innovations shares are owned by institutional investors. Comparatively, 15.4% of Brand House Collective shares are owned by institutional investors. 1.0% of Fortune Brands Innovations shares are owned by insiders. Comparatively, 3.0% of Brand House Collective shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Fortune Brands Innovations beats Brand House Collective on 10 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 Brand House Collective
Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.
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