Ethan Allen Interiors (NYSE:ETD – Get Free Report) and Fortune Brands Innovations (NYSE:FBIN – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Dividends
Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 5.2%. Fortune Brands Innovations pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Ethan Allen Interiors pays out 69.3% of its earnings in the form of a dividend. Fortune Brands Innovations pays out 29.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ethan Allen Interiors has raised its dividend for 1 consecutive years and Fortune Brands Innovations has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 87.6% of Fortune Brands Innovations shares are held by institutional investors. 10.5% of Ethan Allen Interiors shares are held by company insiders. Comparatively, 1.0% of Fortune Brands Innovations shares are held 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ethan Allen Interiors | $646.22 million | 1.17 | $63.82 million | $2.25 | 13.25 |
| Fortune Brands Innovations | $4.61 billion | 1.47 | $471.90 million | $3.41 | 16.57 |
Fortune Brands Innovations has higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a lower price-to-earnings ratio than Fortune Brands Innovations, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Ethan Allen Interiors and Fortune Brands Innovations, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ethan Allen Interiors | 0 | 2 | 0 | 0 | 2.00 |
| Fortune Brands Innovations | 0 | 6 | 5 | 0 | 2.45 |
Ethan Allen Interiors presently has a consensus price target of $30.00, suggesting a potential upside of 0.64%. Fortune Brands Innovations has a consensus price target of $77.27, suggesting a potential upside of 36.75%. Given Fortune Brands Innovations’ stronger consensus rating and higher possible upside, analysts plainly believe Fortune Brands Innovations is more favorable than Ethan Allen Interiors.
Risk & Volatility
Ethan Allen Interiors has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Profitability
This table compares Ethan Allen Interiors and Fortune Brands Innovations’ 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% |
| Fortune Brands Innovations | 9.42% | 20.96% | 7.50% |
Summary
Fortune Brands Innovations beats Ethan Allen Interiors on 14 of the 17 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 Fortune Brands Innovations
Fortune Brands Innovations, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications in the United States and internationally. The company operates through three segments: Water, Outdoors, and Security. The Water segment manufactures or assembles, and sells faucets, accessories, kitchen sinks, and waste disposals under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek, and Schaub brands. The Outdoors segment manufactures and sells fiberglass and steel entry door systems under the Therma-Tru brand; storm, screen, and security doors under the Larson brand; composite decking, railing, and cladding under the Fiberon brand; and urethane millwork under the Fypon brand. The Security segment manufactures, sources, and distributes locks, safety and security devices, and electronic security products under the Master Lock, American Lock, Yale, and August brands; and fire-resistant safes, security containers, and commercial cabinets under the SentrySafe brand. The company sells its products through various sales channels, including kitchen and bath dealers, wholesalers oriented toward builders or professional remodelers, industrial and locksmith distributors, do-it-yourself remodeling-oriented home centers, showrooms, e-commerce, and other retail outlets. Fortune Brands Innovations, Inc. was incorporated in 1988 and is headquartered in Deerfield, Illinois.
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