Analyzing Resideo Technologies (NYSE:REZI) and Apogee Enterprises (NASDAQ:APOG)

Resideo Technologies (NYSE:REZI) and Apogee Enterprises (NASDAQ:APOG) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

91.7% of Resideo Technologies shares are owned by institutional investors. Comparatively, 94.1% of Apogee Enterprises shares are owned by institutional investors. 1.6% of Resideo Technologies shares are owned by company insiders. Comparatively, 2.0% of Apogee Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Resideo Technologies and Apogee Enterprises”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resideo Technologies	$7.65 billion	0.33	-$527.00 million	$2.26	7.46
Apogee Enterprises	$1.40 billion	0.61	$54.13 million	$3.16	13.00

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

Profitability

This table compares Resideo Technologies and Apogee Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resideo Technologies	5.37%	17.79%	5.13%
Apogee Enterprises	4.68%	15.20%	6.83%

Volatility and Risk

Resideo Technologies has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Resideo Technologies and Apogee Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resideo Technologies	1	2	3	0	2.33
Apogee Enterprises	0	2	2	0	2.50

Resideo Technologies presently has a consensus target price of $35.00, suggesting a potential upside of 107.72%. Apogee Enterprises has a consensus target price of $70.50, suggesting a potential upside of 71.64%. Given Resideo Technologies’ higher possible upside, research analysts plainly believe Resideo Technologies is more favorable than Apogee Enterprises.

Summary

Apogee Enterprises beats Resideo Technologies on 8 of the 14 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 Apogee Enterprises

Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.