Financial Contrast: Fundamental Global (NASDAQ:FGF) versus Griffon (NYSE:GFF)

Griffon (NYSE:GFF) and Fundamental Global (NASDAQ:FGF) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

73.2% of Griffon shares are owned by institutional investors. Comparatively, 3.1% of Fundamental Global shares are owned by institutional investors. 10.2% of Griffon shares are owned by company insiders. Comparatively, 34.4% of Fundamental Global 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.

Analyst Recommendations

This is a summary of recent ratings for Griffon and Fundamental Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	0	3	2	3.40
Fundamental Global	0	0	0	0	0.00

Griffon currently has a consensus price target of $98.20, indicating a potential upside of 34.71%. Given Griffon’s stronger consensus rating and higher possible upside, analysts clearly believe Griffon is more favorable than Fundamental Global.

Profitability

This table compares Griffon and Fundamental Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	2.78%	144.21%	11.56%
Fundamental Global	N/A	-30.02%	-14.24%

Valuation & Earnings

This table compares Griffon and Fundamental Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.62 billion	1.29	$209.90 million	$1.34	54.40
Fundamental Global	$17.35 million	1.66	-$1.15 million	$1.31	16.50

Griffon has higher revenue and earnings than Fundamental Global. Fundamental Global 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 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Fundamental Global has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Summary

Griffon beats Fundamental Global on 13 of the 15 factors compared between the two stocks.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.