Fortune Brands Innovations (NYSE:FBIN) and Tecnoglass (NYSE:TGLS) Financial Analysis

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

Volatility and Risk

Tecnoglass has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Dividends

Tecnoglass pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Fortune Brands Innovations pays an annual dividend of $1.04 per share and has a dividend yield of 2.2%. Tecnoglass pays out 21.1% of its earnings in the form of a dividend. 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. Tecnoglass has raised its dividend for 4 consecutive years and Fortune Brands Innovations has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

37.3% of Tecnoglass shares are held by institutional investors. Comparatively, 87.6% of Fortune Brands Innovations shares are held by institutional investors. 0.1% of Tecnoglass shares are held by company insiders. Comparatively, 3.3% of Fortune Brands Innovations shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Tecnoglass and Fortune Brands Innovations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecnoglass	12.35%	17.84%	10.14%
Fortune Brands Innovations	3.39%	19.50%	7.09%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tecnoglass and Fortune Brands Innovations, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecnoglass	0	2	3	0	2.60
Fortune Brands Innovations	1	9	5	0	2.27

Tecnoglass currently has a consensus target price of $63.33, indicating a potential upside of 51.62%. Fortune Brands Innovations has a consensus target price of $55.33, indicating a potential upside of 15.62%. Given Tecnoglass’ stronger consensus rating and higher possible upside, research analysts clearly believe Tecnoglass is more favorable than Fortune Brands Innovations.

Valuation and Earnings

This table compares Tecnoglass and Fortune Brands Innovations”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tecnoglass	$983.61 million	1.88	$159.57 million	$2.84	14.71
Fortune Brands Innovations	$4.46 billion	1.28	$298.80 million	$1.23	38.91

Fortune Brands Innovations has higher revenue and earnings than Tecnoglass. Tecnoglass 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.

Summary

Tecnoglass beats Fortune Brands Innovations on 9 of the 17 factors compared between the two stocks.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

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.