Critical Survey: Ethan Allen Interiors (ETD) & Its Peers

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	3	0	0	2.00
Ethan Allen Interiors Competitors	1815	7449	8173	317	2.39

Ethan Allen Interiors currently has a consensus target price of $22.00, indicating a potential upside of 21.82%. As a group, “Household Durables” companies have a potential upside of 41.63%. Given Ethan Allen Interiors’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Ethan Allen Interiors has less favorable growth aspects than its competitors.

Dividends

Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 8.6%. Ethan Allen Interiors pays out 100.0% 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 raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	5.54%	6.12%	4.04%
Ethan Allen Interiors Competitors	-2.57%	-17.10%	1.24%

Earnings & Valuation

This table compares Ethan Allen Interiors and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ethan Allen Interiors	$579.49 million	$39.88 million	11.58
Ethan Allen Interiors Competitors	$5.33 billion	$313.99 million	9.15

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

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

Volatility and Risk

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

Summary

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

About Ethan Allen Interiors

Ethan Allen Interiors Inc. (NYSE: ETD) is a vertically integrated home furnishings company that designs, manufactures, markets and sells furniture and related products. Its offerings include living room, dining room and bedroom furniture, upholstery, case goods, home accents, mattresses and other furnishings for residential interiors. The company sells its products through a network of Ethan Allen Design Centers, interior designers and independent retailers, as well as through its website and other digital channels.