Northann (NYSE:NCL – Get Free Report) and Fortune Brands Innovations (NYSE:FBIN – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Northann has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Insider and Institutional Ownership
0.3% of Northann shares are held by institutional investors. Comparatively, 87.6% of Fortune Brands Innovations shares are held by institutional investors. 8.2% of Northann 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 stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northann | $15.13 million | 0.56 | -$7.13 million | ($0.29) | -0.55 |
| Fortune Brands Innovations | $4.46 billion | 1.22 | $298.80 million | $1.23 | 37.02 |
Fortune Brands Innovations has higher revenue and earnings than Northann. Northann 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.
Analyst Ratings
This is a summary of recent ratings and price targets for Northann and Fortune Brands Innovations, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northann | 0 | 0 | 0 | 0 | 0.00 |
| Fortune Brands Innovations | 1 | 9 | 6 | 1 | 2.41 |
Fortune Brands Innovations has a consensus target price of $55.71, suggesting a potential upside of 22.34%. Given Fortune Brands Innovations’ stronger consensus rating and higher possible upside, analysts clearly believe Fortune Brands Innovations is more favorable than Northann.
Profitability
This table compares Northann and Fortune Brands Innovations’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northann | -26.58% | -456.34% | -30.35% |
| Fortune Brands Innovations | 3.39% | 19.50% | 7.09% |
Summary
Fortune Brands Innovations beats Northann on 14 of the 15 factors compared between the two stocks.
About Northann
Northann Corp. engages in the manufacture, wholesale, and retail of the 3D printed vinyl flooring panels and other decorative panels in North America, Europe, and internationally. The company offers its products under the Benchwick brand name. Northann Corp. was founded in 2013 and is based in Elk Grove, California.
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.
Receive News & Ratings for Northann Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northann and related companies with MarketBeat.com's FREE daily email newsletter.
