Critical Survey: Dunelm Group (OTCMKTS:DNLMY) & Mohawk Industries (NYSE:MHK)

Dunelm Group (OTCMKTS:DNLMY) and Mohawk Industries (NYSE:MHK) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Dunelm Group has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Mohawk Industries has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Profitability

This table compares Dunelm Group and Mohawk Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dunelm Group	N/A	N/A	N/A
Mohawk Industries	4.54%	7.68%	4.50%

Earnings & Valuation

This table compares Dunelm Group and Mohawk Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dunelm Group	$2.15 billion	1.48	$190.42 million	N/A	N/A
Mohawk Industries	$10.84 billion	0.64	$517.70 million	$7.64	14.51

Mohawk Industries has higher revenue and earnings than Dunelm Group.

Analyst Ratings

This is a breakdown of current ratings and target prices for Dunelm Group and Mohawk Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dunelm Group	0	1	0	3	3.50
Mohawk Industries	0	6	7	2	2.73

Mohawk Industries has a consensus price target of $140.00, suggesting a potential upside of 26.31%. Given Mohawk Industries’ higher possible upside, analysts plainly believe Mohawk Industries is more favorable than Dunelm Group.

Insider and Institutional Ownership

79.0% of Mohawk Industries shares are held by institutional investors. 17.4% of Mohawk Industries 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.

Summary

Mohawk Industries beats Dunelm Group on 10 of the 13 factors compared between the two stocks.

About Dunelm Group

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and armchairs; bedding products comprising bed linen, dorma, baby and kid’s bedding, and duvets, pillows, and protectors; curtains and rugs; and venetian, roller, roman, vertical, and made to measure blinds. It also offers range of home decor products, such as wall art and décor, mirrors, clocks, ornaments, pictures and frames, candle and home fragrance, flower and plants, vases, decorative trays and bowls, kid’s decor, plant pots, cushions, throws, draught excluders, doorstops, bean bags, and letterbox flowers, as well as housewarming, engagement, anniversary, and wedding gifts; lighting products, including ceiling and wall lights, table and desk lamps, floor lamps, and pendants and lamp shades; and paint, wallpaper, DIY and upcycling, and haberdashery products. In addition, the company provides kitchen and utility products comprising cooking, dining, electrical, utility, and pet products; bathroom accessories, as well as furniture and decor products; storage products, such as travel and luggage, home, clothes, and kitchen storage; kids bedroom, furniture, nursery, and accessories products; and Christmas products and winter essentials. It operates through a network of stores, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is based in Syston, the United Kingdom.

About Mohawk Industries

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.