Analyzing Forbo (OTCMKTS:FBOHY) & Resideo Technologies (NYSE:REZI)

Resideo Technologies (NYSE:REZI) and Forbo (OTCMKTS:FBOHY) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Insider and Institutional Ownership

91.7% of Resideo Technologies shares are held by institutional investors. 1.6% of Resideo Technologies shares are held by 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.

Analyst Recommendations

This is a breakdown of current recommendations for Resideo Technologies and Forbo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resideo Technologies	2	1	2	0	2.00
Forbo	0	0	0	0	0.00

Resideo Technologies currently has a consensus price target of $41.00, suggesting a potential upside of 57.64%. Given Resideo Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Resideo Technologies is more favorable than Forbo.

Profitability

This table compares Resideo Technologies and Forbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resideo Technologies	-6.71%	16.70%	4.66%
Forbo	N/A	N/A	N/A

Earnings and Valuation

This table compares Resideo Technologies and Forbo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resideo Technologies	$7.47 billion	0.53	-$527.00 million	($3.84)	-6.77
Forbo	N/A	N/A	N/A	$1.20	17.49

Forbo has lower revenue, but higher earnings than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Forbo, indicating that it is currently the more affordable of the two stocks.

Summary

Resideo Technologies beats Forbo on 8 of the 11 factors compared between the two stocks.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

About Forbo

Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Europe, the Americas, Asia Pacific, and Africa. The company operates through two divisions, Flooring Systems and Movement Systems. The Flooring Systems division develops, produces, and sells linoleum, vinyl floorings, entrance flooring systems, carpet tiles, needle felt floor coverings, Flotex, the washable textile floorings, and building and construction adhesives, as well as various accessory products for laying, processing, cleaning, and care of flooring. This division also provides ready-made adhesives for floor covering installations, parquet flooring, and ceramic tiles, as well as leveling compounds for the construction industry and liquid floors under the trade name of Eurocol. Its products are used in public buildings, department stores, hospitals and other healthcare facilities, schools, libraries, commercial and office spaces, leisure centers, shops, hotels, restaurants, and cafeterias, as well as for applications in the residential market. The Movement Systems division offers conveyor and processing belts, plastic modular belts, power transmission belts, and timing and flat belts under the Siegling brand name. Its products are used in various applications in industry, trade, and the service sector, including conveyor and processing belts in the food industry; treadmill belts in fitness studios; and flat belts in mail distribution centers. Forbo Holding AG was founded in 1928 and is headquartered in Baar, Switzerland.