Comparing MillerKnoll (NASDAQ:MLKN) & Interface (NASDAQ:TILE)

MillerKnoll (NASDAQ:MLKN) and Interface (NASDAQ:TILE) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MillerKnoll and Interface, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MillerKnoll	0	2	1	0	2.33
Interface	0	0	3	1	3.25

Interface has a consensus price target of $40.50, indicating a potential upside of 8.75%. Given Interface’s stronger consensus rating and higher possible upside, analysts plainly believe Interface is more favorable than MillerKnoll.

Risk & Volatility

MillerKnoll has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Interface has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Dividends

MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 3.3%. Interface pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. MillerKnoll pays out 56.8% of its earnings in the form of a dividend. Interface pays out 4.9% 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.

Profitability

This table compares MillerKnoll and Interface’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MillerKnoll	2.38%	9.77%	3.25%
Interface	10.10%	21.77%	11.18%

Institutional and Insider Ownership

87.5% of MillerKnoll shares are held by institutional investors. Comparatively, 98.3% of Interface shares are held by institutional investors. 5.4% of MillerKnoll shares are held by company insiders. Comparatively, 2.5% of Interface shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares MillerKnoll and Interface”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MillerKnoll	$3.84 billion	0.41	$91.50 million	$1.32	17.36
Interface	$1.44 billion	1.50	$116.10 million	$2.47	15.08

Interface has lower revenue, but higher earnings than MillerKnoll. Interface is trading at a lower price-to-earnings ratio than MillerKnoll, indicating that it is currently the more affordable of the two stocks.

Summary

Interface beats MillerKnoll on 13 of the 17 factors compared between the two stocks.

About MillerKnoll

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. It operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail. The company also provides seating products, furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. It offers its products under the MillerKnoll, Herman Miller, Herman Miller Circled Symbolic M, Knoll, Maharam, Geiger, Design Within Reach, DWR, HAY, NaughtOne, Nemschoff, Aeron, Mirra, Embody, Setu, Sayl, Cosm, Caper, Eames, Knoll, KnollExtra, Knoll Luxe, KnollStudio, KnollTextiles, Edelman Leather, Spinneybeck Leather, Generation by Knoll, Regeneration by Knoll, MultiGeneration by Knoll, Remix, Holly Hunt, Vladimir Kagan, Muuto, Barcelona, and Womb names. The company offers its products through independent contract furniture dealers, direct contract sales, e-commerce websites, and wholesale and retail stores. Its products are used in institutional, health/science, and residential and other environments, and industrial and educational settings, as well as transportation terminals. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.

About Interface

Interface, Inc. designs, produces, and sells modular carpet products primarily worldwide. The company operates in two segments, Americas (AMS), and Europe, Africa, Asia and Australia (EAAA). The company offers modular carpets under the Interface and FLOR brand names; luxury vinyl tiles; carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; and modular resilient flooring products. It also provides carpet replacement, installation, and maintenance services; and rubber flooring under the norament and noraplan brand names; as well as produces and sells an adapted version of its carpet tile for the healthcare facilities market. In addition, the company sells a proprietary antimicrobial chemical compound under the Intersept name; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. The company sells its products directly to end-users, as well as indirectly through independent contractors, installers, or distributors. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.