Comparing Fortune Brands Home & Security (FBHS) & Continental Building Products (NYSE:CBPX)
Continental Building Products (NYSE: CBPX) and Fortune Brands Home & Security (NYSE:FBHS) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitabiliy, risk and valuation.
Fortune Brands Home & Security pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Continental Building Products 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 3 consecutive years.
Valuation and Earnings
This table compares Continental Building Products and Fortune Brands Home & Security’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Continental Building Products||$470.51 million||1.86||$132.24 million||$1.08||20.69|
|Fortune Brands Home & Security||$5.07 billion||2.04||$794.90 million||$2.74||24.49|
Fortune Brands Home & Security has higher revenue and earnings than Continental Building Products. Continental Building Products 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 Continental Building Products and Fortune Brands Home & Security’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Continental Building Products||9.30%||15.57%||7.64%|
|Fortune Brands Home & Security||8.48%||19.01%||8.72%|
Risk and Volatility
Continental Building Products has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Fortune Brands Home & Security has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Insider and Institutional Ownership
97.4% of Continental Building Products shares are owned by institutional investors. Comparatively, 85.6% of Fortune Brands Home & Security shares are owned by institutional investors. 0.3% of Continental Building Products shares are owned by insiders. Comparatively, 1.6% of Fortune Brands Home & Security shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Continental Building Products and Fortune Brands Home & Security, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||4||2||0||2.33|
|Fortune Brands Home & Security||0||6||11||0||2.65|
Continental Building Products currently has a consensus target price of $25.00, indicating a potential upside of 11.86%. Fortune Brands Home & Security has a consensus target price of $67.00, indicating a potential downside of 0.15%. Given Continental Building Products’ higher possible upside, equities analysts clearly believe Continental Building Products is more favorable than Fortune Brands Home & Security.
Fortune Brands Home & Security beats Continental Building Products on 13 of the 17 factors compared between the two stocks.
Continental Building Products Company Profile
Continental Building Products, Inc. is a manufacturer of gypsum wallboard and complementary finishing products. The Company operates through wallboard segment. Gypsum wallboard is a primary building material used in residential and commercial construction and in repair and remodel (R&R). It offers customers a range of gypsum wallboard products, including LiftLite, its lightweight product designed to lift and install; its Mold Defense line of products designed for protection against mold and mildew, and its Weather Defense line of moisture and mold-resistant exterior sheathing. The Company also operates a finishing products business that manufactures a line of joint compounds at its plant in Silver Grove (Kentucky) and its joint compound plant in Chambly (Quebec). The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company’s manufacturing facilities are concentrated in the eastern United States and eastern Canada.
Fortune Brands Home & Security Company Profile
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.
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