Fortune Brands Home & Security (NYSE:FBHS) and Summit Networks (NASDAQ:SNTW) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Fortune Brands Home & Security pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Summit Networks does not pay a dividend. Fortune Brands Home & Security pays out 26.3% of its earnings in the form of a dividend. Fortune Brands Home & Security has increased its dividend for 5 consecutive years.
This table compares Fortune Brands Home & Security and Summit Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortune Brands Home & Security||$5.49 billion||1.16||$389.60 million||$3.34||13.48|
Fortune Brands Home & Security has higher revenue and earnings than Summit Networks.
This is a breakdown of recent ratings and recommmendations for Fortune Brands Home & Security and Summit Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortune Brands Home & Security||0||7||5||0||2.42|
Fortune Brands Home & Security presently has a consensus target price of $55.40, suggesting a potential upside of 23.08%. Given Fortune Brands Home & Security’s higher probable upside, research analysts clearly believe Fortune Brands Home & Security is more favorable than Summit Networks.
Institutional and Insider Ownership
88.0% of Fortune Brands Home & Security shares are owned by institutional investors. 1.7% of Fortune Brands Home & Security shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Fortune Brands Home & Security and Summit Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortune Brands Home & Security||7.10%||21.91%||8.38%|
Fortune Brands Home & Security beats Summit Networks on 10 of the 11 factors compared between the two stocks.
About Fortune Brands Home & Security
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.
About Summit Networks
Summit Networks Inc., a development stage company, distributes glass craft products in the United States. It distributes glass crafts, novelties, knobs, trophies, vases, glasses, boxes, bowls, trays, and plates to wholesale customers. The company was founded in 2014 and is based in Mong Kok, Hong Kong.
Receive News & Ratings for Fortune Brands Home & Security Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fortune Brands Home & Security and related companies with MarketBeat.com's FREE daily email newsletter.