Analyzing Ethan Allen Interiors (ETD) & Its Rivals

Ethan Allen Interiors (NYSE:ETD) is one of 14 publicly-traded companies in the “RETAIL – HOME FRN” industry, but how does it weigh in compared to its rivals? We will compare Ethan Allen Interiors to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Profitability

This table compares Ethan Allen Interiors and its rivals’ 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%
Ethan Allen Interiors Competitors	6.52%	33.77%	8.67%

Institutional & Insider Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are held by institutional investors. 10.5% of Ethan Allen Interiors shares are held by company insiders. Comparatively, 5.0% of shares of all “RETAIL – HOME FRN” companies 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.

Dividends

Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 5.4%. Ethan Allen Interiors pays out 69.3% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.5% and pay out 49.5% of their earnings in the form of a dividend. Ethan Allen Interiors has raised its dividend for 1 consecutive years.

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, Ethan Allen Interiors’ rivals have a beta of 1.46, meaning that their average stock price is 46% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ethan Allen Interiors and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ethan Allen Interiors	$646.22 million	$63.82 million	12.92
Ethan Allen Interiors Competitors	$26.21 billion	$2.36 billion	17.10

Ethan Allen Interiors’ rivals have higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Ethan Allen Interiors and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	2	0	0	2.00
Ethan Allen Interiors Competitors	173	1319	2029	38	2.54

Ethan Allen Interiors presently has a consensus price target of $32.00, indicating a potential upside of 10.08%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 19.20%. Given Ethan Allen Interiors’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Ethan Allen Interiors has less favorable growth aspects than its rivals.

Summary

Ethan Allen Interiors rivals beat Ethan Allen Interiors on 11 of the 15 factors compared.

Ethan Allen Interiors Company Profile

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.