ForeScout Technologies (NASDAQ: FSCT) and Fortune Brands Home & Security (NYSE:FBHS) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
Fortune Brands Home & Security pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. ForeScout Technologies does not pay a dividend. Fortune Brands Home & Security pays out 26.0% of its earnings in the form of a dividend. Fortune Brands Home & Security has raised its dividend for 4 consecutive years.
This is a summary of current recommendations and price targets for ForeScout Technologies and Fortune Brands Home & Security, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortune Brands Home & Security||0||6||8||0||2.57|
ForeScout Technologies currently has a consensus price target of $32.20, indicating a potential downside of 0.74%. Fortune Brands Home & Security has a consensus price target of $73.62, indicating a potential upside of 25.00%. Given Fortune Brands Home & Security’s higher probable upside, analysts plainly believe Fortune Brands Home & Security is more favorable than ForeScout Technologies.
Insider & Institutional Ownership
36.1% of ForeScout Technologies shares are owned by institutional investors. Comparatively, 88.2% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares ForeScout Technologies and Fortune Brands Home & Security’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortune Brands Home & Security||8.95%||18.73%||8.94%|
Earnings and Valuation
This table compares ForeScout Technologies and Fortune Brands Home & Security’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ForeScout Technologies||$220.87 million||5.76||-$91.20 million||($7.93)||-4.09|
|Fortune Brands Home & Security||$5.28 billion||1.69||$472.60 million||$3.08||19.12|
Fortune Brands Home & Security has higher revenue and earnings than ForeScout Technologies. ForeScout Technologies 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.
Fortune Brands Home & Security beats ForeScout Technologies on 13 of the 16 factors compared between the two stocks.
About ForeScout Technologies
ForeScout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers ForeScout CounterACT agentless technology that discovers, classifies, and assesses IP-based devices; ForeScout extended modules, which represent integrations across vulnerability assessment, advanced threat detection, security incidence and event management, enterprise mobility management, endpoint protection and endpoint detection and response, next generation firewall, privileged access management, and IT systems management vendors, as well as compliance; and ForeScout CounterACT Enterprise Manager, a centralized security management solution for the control of various appliances deployed on an end-customer network, as well as maintenance and professional services. The company’s products are used to protect organizations against the threats that exploit the billions of Internet of things devices connected to organizations’ networks. ForeScout Technologies, Inc. sells its products and services through distributors and resellers. The company was founded in 2000 and is headquartered in San Jose, California.
About Fortune Brands Home & Security
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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