Financial Analysis: FGI Industries (NASDAQ:FGI) and Tecnoglass (NYSE:TGLS)

FGI Industries (NASDAQ:FGI) and Tecnoglass (NYSE:TGLS) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FGI Industries	-3.07%	10.02%	2.28%
Tecnoglass	12.35%	17.84%	10.14%

Insider & Institutional Ownership

37.3% of Tecnoglass shares are held by institutional investors. 2.4% of FGI Industries shares are held by company insiders. Comparatively, 0.1% of Tecnoglass shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares FGI Industries and Tecnoglass”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FGI Industries	$130.53 million	0.11	-$6.14 million	($2.08)	-3.43
Tecnoglass	$983.61 million	1.66	$159.57 million	$2.84	12.94

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

Analyst Ratings

This is a summary of current ratings and price targets for FGI Industries and Tecnoglass, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FGI Industries	1	1	1	0	2.00
Tecnoglass	1	1	3	0	2.40

FGI Industries currently has a consensus target price of $13.00, suggesting a potential upside of 82.07%. Tecnoglass has a consensus target price of $63.33, suggesting a potential upside of 72.32%. Given FGI Industries’ higher possible upside, equities analysts plainly believe FGI Industries is more favorable than Tecnoglass.

Summary

Tecnoglass beats FGI Industries on 11 of the 13 factors compared between the two stocks.

About FGI Industries

FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.

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.