Ethan Allen Interiors (ETD) versus The Competition Critical Analysis

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

Profitability

This table compares Ethan Allen Interiors and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	5.54%	6.44%	4.17%
Ethan Allen Interiors Competitors	-2.56%	-17.20%	1.25%

Volatility & Risk

Ethan Allen Interiors has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors’ peers have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.

Insider and Institutional Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 9.9% of Ethan Allen Interiors shares are held by insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ethan Allen Interiors and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	3	0	0	2.00
Ethan Allen Interiors Competitors	1821	7455	8182	320	2.39

Ethan Allen Interiors currently has a consensus target price of $22.00, suggesting a potential upside of 25.56%. As a group, “Household Durables” companies have a potential upside of 44.78%. Given Ethan Allen Interiors’ peers stronger consensus rating and higher possible upside, analysts plainly believe Ethan Allen Interiors has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Ethan Allen Interiors and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ethan Allen Interiors	$579.49 million	$39.88 million	14.36
Ethan Allen Interiors Competitors	$5.32 billion	$313.99 million	8.81

Ethan Allen Interiors’ peers have higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors 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.

Dividends

Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 8.9%. Ethan Allen Interiors pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Ethan Allen Interiors has increased its dividend for 1 consecutive years.

Summary

Ethan Allen Interiors peers beat Ethan Allen Interiors on 9 of the 15 factors compared.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc. is a vertically integrated home furnishings company that designs, manufactures, markets and sells furniture and related home products. Its offerings include upholstered and wood furniture, rugs, lighting, bedding and decorative accessories for living rooms, dining rooms, bedrooms and other spaces. The company also provides interior design services through its design centers, where customers can work with designers on individual purchases or coordinated home furnishings.