Flexsteel Industries (NASDAQ:FLXS) & American Woodmark (NASDAQ:AMWD) Financial Analysis

Flexsteel Industries (NASDAQ:FLXS) and American Woodmark (NASDAQ:AMWD) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Flexsteel Industries and American Woodmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexsteel Industries	4.57%	14.74%	8.70%
American Woodmark	5.11%	9.43%	5.46%

Institutional & Insider Ownership

36.3% of Flexsteel Industries shares are owned by institutional investors. Comparatively, 95.5% of American Woodmark shares are owned by institutional investors. 15.6% of Flexsteel Industries shares are owned by insiders. Comparatively, 1.7% of American Woodmark shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Flexsteel Industries and American Woodmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexsteel Industries	0	0	0	0	0.00
American Woodmark	1	1	2	0	2.25

American Woodmark has a consensus price target of $70.00, indicating a potential upside of 0.52%. Given American Woodmark’s stronger consensus rating and higher probable upside, analysts plainly believe American Woodmark is more favorable than Flexsteel Industries.

Risk and Volatility

Flexsteel Industries has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, American Woodmark has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Flexsteel Industries and American Woodmark”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexsteel Industries	$441.07 million	0.58	$20.15 million	$3.54	13.70
American Woodmark	$1.71 billion	0.59	$99.46 million	$5.59	12.46

American Woodmark has higher revenue and earnings than Flexsteel Industries. American Woodmark is trading at a lower price-to-earnings ratio than Flexsteel Industries, indicating that it is currently the more affordable of the two stocks.

Summary

American Woodmark beats Flexsteel Industries on 10 of the 14 factors compared between the two stocks.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.