Head-To-Head Contrast: Floor & Decor (NYSE:FND) versus Ethan Allen Interiors (NYSE:ETD)

Ethan Allen Interiors (NYSE:ETD) and Floor & Decor (NYSE:FND) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. 10.5% of Ethan Allen Interiors shares are held by company insiders. Comparatively, 2.1% of Floor & Decor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Ethan Allen Interiors has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ethan Allen Interiors and Floor & Decor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	2	0	0	2.00
Floor & Decor	2	10	6	0	2.22

Ethan Allen Interiors currently has a consensus target price of $32.00, suggesting a potential upside of 17.20%. Floor & Decor has a consensus target price of $93.56, suggesting a potential upside of 23.50%. Given Floor & Decor’s stronger consensus rating and higher probable upside, analysts clearly believe Floor & Decor is more favorable than Ethan Allen Interiors.

Profitability

This table compares Ethan Allen Interiors and Floor & Decor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	9.29%	12.08%	7.83%
Floor & Decor	4.53%	9.32%	3.95%

Valuation & Earnings

This table compares Ethan Allen Interiors and Floor & Decor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ethan Allen Interiors	$646.22 million	1.07	$63.82 million	$2.25	12.14
Floor & Decor	$4.46 billion	1.83	$205.87 million	$1.89	40.08

Floor & Decor has higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Summary

Floor & Decor beats Ethan Allen Interiors on 8 of the 14 factors compared between the two stocks.

About Ethan Allen Interiors

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery comprising fabric-covered items, such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. It operates a network of design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.

About Floor & Decor

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.