Analyzing Mohawk Industries (MHK) and The Competition

Mohawk Industries (NYSE:MHK) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it compare to its peers? We will compare Mohawk Industries to similar businesses based on the strength of its institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by company insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Mohawk Industries and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mohawk Industries	1	10	4	0	2.20
Mohawk Industries Competitors	1815	7448	8170	317	2.39

Mohawk Industries currently has a consensus price target of $138.92, indicating a potential downside of 8.68%. As a group, “Household Durables” companies have a potential upside of 41.50%. Given Mohawk Industries’ peers stronger consensus rating and higher possible upside, analysts plainly believe Mohawk Industries has less favorable growth aspects than its peers.

Profitability

This table compares Mohawk Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mohawk Industries	4.63%	7.47%	4.59%
Mohawk Industries Competitors	-2.57%	-17.07%	1.23%

Risk and Volatility

Mohawk Industries has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Mohawk Industries’ peers have a beta of 1.77, indicating that their average share price is 77% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mohawk Industries and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mohawk Industries	$10.79 billion	$369.90 million	17.85
Mohawk Industries Competitors	$5.27 billion	$310.98 million	9.15

Mohawk Industries has higher revenue and earnings than its peers. Mohawk Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Mohawk Industries beats its peers on 7 of the 13 factors compared.

About Mohawk Industries

Mohawk Industries, Inc. is a global flooring manufacturer headquartered in Calhoun, Georgia. Its roots trace to a carpet-weaving business established in Amsterdam, New York, in 1878. The company makes flooring for residential and commercial customers, including carpet, rugs, ceramic and porcelain tile, natural stone, hardwood, laminate and luxury vinyl products. Its portfolio includes brands such as Mohawk, Daltile, American Olean, Karastan and Pergo. Mohawk serves markets across North America and internationally, with manufacturing and distribution operations in several regions.