Fortune Brands Home & Security (NYSE: FBHS) and Superior Uniform Group (NASDAQ:SGC) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Fortune Brands Home & Security pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Superior Uniform Group pays an annual dividend of $0.38 per share and has a dividend yield of 1.4%. Fortune Brands Home & Security pays out 26.0% of its earnings in the form of a dividend. Superior Uniform Group pays out 30.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fortune Brands Home & Security has raised its dividend for 4 consecutive years.
This table compares Fortune Brands Home & Security and Superior Uniform Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortune Brands Home & Security||$5.28 billion||1.69||$472.60 million||$3.08||19.06|
|Superior Uniform Group||$266.81 million||1.50||$15.02 million||$1.25||21.15|
Fortune Brands Home & Security has higher revenue and earnings than Superior Uniform Group. Fortune Brands Home & Security is trading at a lower price-to-earnings ratio than Superior Uniform Group, indicating that it is currently the more affordable of the two stocks.
This table compares Fortune Brands Home & Security and Superior Uniform Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortune Brands Home & Security||8.95%||18.73%||8.94%|
|Superior Uniform Group||5.64%||15.81%||9.29%|
Risk & Volatility
Fortune Brands Home & Security has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Superior Uniform Group has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500.
Institutional & Insider Ownership
88.2% of Fortune Brands Home & Security shares are owned by institutional investors. Comparatively, 35.9% of Superior Uniform Group shares are owned by institutional investors. 1.7% of Fortune Brands Home & Security shares are owned by company insiders. Comparatively, 34.7% of Superior Uniform Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Fortune Brands Home & Security and Superior Uniform Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortune Brands Home & Security||0||6||8||0||2.57|
|Superior Uniform Group||0||0||1||0||3.00|
Fortune Brands Home & Security presently has a consensus target price of $73.62, suggesting a potential upside of 25.37%. Superior Uniform Group has a consensus target price of $29.00, suggesting a potential upside of 9.68%. Given Fortune Brands Home & Security’s higher possible upside, equities research analysts plainly believe Fortune Brands Home & Security is more favorable than Superior Uniform Group.
Fortune Brands Home & Security beats Superior Uniform Group on 12 of the 17 factors compared between the two stocks.
Fortune Brands Home & Security Company Profile
Fortune Brands Home & Security, Inc., together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in four segments: Cabinets, Plumbing, Doors, and Security. The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities for the kitchen, bath, and other parts of the home directly to kitchen and bath dealers, home centers, wholesalers, and builders in North America. The Plumbing segment manufactures, assembles, and sells faucets, accessories, kitchen sinks, and waste disposals in the United States, Canada China, Mexico, Southeast Asia, Europe, and South America directly through its own sales force, as well as through independent manufacturers' representatives primarily to wholesalers, home centers, mass merchandisers, and industrial distributors. The Doors segment manufactures and sells fiberglass and steel entry doors to home centers, millwork building products and wholesale distributors, and specialty dealers, as well as to the remodeling and renovation markets in the United States and Canada. The Security segment manufactures and sells key-controlled and combination padlocks, bicycle and cable locks, built-in locker locks, door hardware, automotive locks, trailer and towing locks, electronic access control solutions, and other specialty safety and security devices for consumer use to hardware, home center, and other retail outlets. It also offers lock systems and fire resistant safes to locksmiths, industrial and institutional users, and original equipment manufacturers. This segment sells its products in the United States, Canada, Europe, Central America, Japan, and Australia. The company was founded in 1988 and is headquartered in Deerfield, Illinois.
Superior Uniform Group Company Profile
Superior Uniform Group, Inc. (Superior) manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. Superior operates through two segments: Uniforms and Related Products, and Remote Staffing Solutions. The Uniforms and Related Products segment consists of the sale of uniforms and related items. Its principal products are uniforms and service apparel, and related products for personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises, such as career apparel for banks and airlines; public and private safety and security organizations, and for miscellaneous service uses. The Remote Staffing Solutions segment consists of sales of staffing solutions.
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