Comparing Fortune Brands Home & Security (FBHS) & Unifi (UFI)
Fortune Brands Home & Security (NYSE: FBHS) and Unifi (NYSE:UFI) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Volatility and Risk
Fortune Brands Home & Security has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Unifi has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Fortune Brands Home & Security and Unifi, 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|
Fortune Brands Home & Security presently has a consensus price target of $73.62, indicating a potential upside of 18.58%. Unifi has a consensus price target of $42.00, indicating a potential upside of 12.54%. Given Fortune Brands Home & Security’s higher possible upside, analysts clearly believe Fortune Brands Home & Security is more favorable than Unifi.
Earnings & Valuation
This table compares Fortune Brands Home & Security and Unifi’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortune Brands Home & Security||$5.28 billion||1.79||$472.60 million||$3.06||20.29|
|Unifi||$647.27 million||1.06||$32.87 million||$2.13||17.52|
Fortune Brands Home & Security has higher revenue and earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than Fortune Brands Home & Security, indicating that it is currently the more affordable of the two stocks.
This table compares Fortune Brands Home & Security and Unifi’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%|
Fortune Brands Home & Security pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Unifi does not pay a dividend. Fortune Brands Home & Security pays out 26.1% of its earnings in the form of a dividend. Unifi has raised its dividend for 4 consecutive years.
Insider & Institutional Ownership
87.9% of Fortune Brands Home & Security shares are held by institutional investors. Comparatively, 79.1% of Unifi shares are held by institutional investors. 1.6% of Fortune Brands Home & Security shares are held by company insiders. Comparatively, 15.4% of Unifi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Fortune Brands Home & Security beats Unifi on 13 of the 17 factors compared between the two stocks.
About Fortune Brands Home & Security
Fortune Brands Home & Security, Inc. is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft. The Plumbing segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks and waste disposals under the Moen, Riobel, ROHL, Perrin & Rowe, and Waste King brands. The Doors segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name and urethane millwork product lines under the Fypon brand name. The Security segment includes locks, safety and security devices and electronic security products under the Master Lock brand name and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand name.
Unifi, Inc. is a manufacturing company. The Company processes and sells commodity yarns, specialized yarns and premier value-added (PVA) yarns. The Company operates through three segments: Polyester segment, Nylon segment and International segment. The Company’s polyester products include polyester polymer beads (Chip), partially oriented yarn (POY), textured, solution and package dyed, twisted, beamed and draw wound yarns. Each polyester product is available in virgin or recycled varieties, where the recycled is made from both pre-consumer yarn waste and post-consumer waste, including plastic bottles. The Company’s nylon products include textured, solution dyed and spandex covered products. The Company’s products include REPREVE, Sorbtek, Reflexx, aio, Augusta and A.M.Y. The Company’s principal geographic markets for its products are located in North America, Central America, South America and Asia.
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