Fortune Brands Innovations (NYSE:FBIN) versus Apogee Enterprises (NASDAQ:APOG) Financial Analysis

Fortune Brands Innovations (NYSE:FBIN) and Apogee Enterprises (NASDAQ:APOG) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility and Risk

Fortune Brands Innovations has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fortune Brands Innovations and Apogee Enterprises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortune Brands Innovations	$4.46 billion	1.35	$298.80 million	$1.23	40.95
Apogee Enterprises	$1.40 billion	0.64	$54.13 million	$3.19	13.52

Fortune Brands Innovations has higher revenue and earnings than Apogee Enterprises. Apogee Enterprises 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Fortune Brands Innovations and Apogee Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortune Brands Innovations	2	8	5	0	2.20
Apogee Enterprises	0	1	2	1	3.00

Fortune Brands Innovations presently has a consensus target price of $55.33, suggesting a potential upside of 9.85%. Apogee Enterprises has a consensus target price of $70.50, suggesting a potential upside of 63.46%. Given Apogee Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Apogee Enterprises is more favorable than Fortune Brands Innovations.

Profitability

This table compares Fortune Brands Innovations and Apogee Enterprises’ 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%
Apogee Enterprises	4.88%	14.72%	6.67%

Dividends

Fortune Brands Innovations pays an annual dividend of $1.04 per share and has a dividend yield of 2.1%. Apogee Enterprises pays an annual dividend of $1.08 per share and has a dividend yield of 2.5%. Fortune Brands Innovations pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apogee Enterprises pays out 33.9% of its earnings in the form of a dividend. Fortune Brands Innovations has raised its dividend for 2 consecutive years and Apogee Enterprises has raised its dividend for 14 consecutive years. Apogee Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

87.6% of Fortune Brands Innovations shares are held by institutional investors. Comparatively, 94.1% of Apogee Enterprises shares are held by institutional investors. 3.3% of Fortune Brands Innovations shares are held by insiders. Comparatively, 2.0% of Apogee Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 Apogee Enterprises

Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.