Griffon (NYSE:GFF) and FGI Industries (NASDAQ:FGI) Financial Analysis

Griffon (NYSE:GFF) and FGI Industries (NASDAQ:FGI) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Griffon and FGI Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	8.08%	249.31%	12.64%
FGI Industries	-2.61%	4.31%	0.94%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Griffon and FGI Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	1	2	1	3.00
FGI Industries	1	1	1	0	2.00

Griffon currently has a consensus price target of $122.50, suggesting a potential upside of 16.47%. FGI Industries has a consensus price target of $13.00, suggesting a potential upside of 106.35%. Given FGI Industries’ higher probable upside, analysts clearly believe FGI Industries is more favorable than Griffon.

Institutional & Insider Ownership

73.2% of Griffon shares are held by institutional investors. 10.2% of Griffon shares are held by insiders. Comparatively, 2.4% of FGI Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Griffon and FGI Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.52 billion	1.89	$51.11 million	$3.92	26.83
FGI Industries	$130.53 million	0.09	-$6.14 million	($2.08)	-3.03

Griffon has higher revenue and earnings than FGI Industries. FGI Industries is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Griffon has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, FGI Industries has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Summary

Griffon beats FGI Industries on 13 of the 15 factors compared between the two stocks.

About Griffon

Griffon Corporation is a diversified management and holding company whose businesses make products for homes, buildings, gardens and outdoor spaces. Its operations are organized into Home and Building Products and Consumer and Professional Products. The Home and Building Products segment includes Clopay, which makes residential and commercial garage doors, and CornellCookson, which produces rolling steel doors and security grilles. The Consumer and Professional Products segment sells lawn and garden tools, landscaping products and home organization products through brands including AMES, True Temper and ClosetMaid.

About FGI Industries

FGI Industries designs, develops and distributes products for residential bathrooms. Its offerings include bathroom vanities and other furniture, shower doors and systems, bathtubs, toilets, mirrors and medicine cabinets. The company sells through home-improvement retailers, wholesalers, distributors, builders and online channels. Its portfolio includes products marketed under brands such as FGI, Foremost and Craft + Main. FGI traces its bathroom-products business to 1987 and serves customers in North America and international markets, including the United Kingdom and Europe.