Floor & Decor (NYSE:FND – Get Free Report) and Wayfair (NYSE:W – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for Floor & Decor and Wayfair, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Floor & Decor | 5 | 12 | 4 | 0 | 1.95 |
| Wayfair | 1 | 11 | 15 | 3 | 2.67 |
Floor & Decor currently has a consensus target price of $54.70, indicating a potential upside of 6.59%. Wayfair has a consensus target price of $128.96, indicating a potential upside of 12.69%. Given Wayfair’s stronger consensus rating and higher probable upside, analysts plainly believe Wayfair is more favorable than Floor & Decor.
Insider & Institutional Ownership
89.7% of Wayfair shares are owned by institutional investors. 1.8% of Floor & Decor shares are owned by insiders. Comparatively, 18.4% of Wayfair shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Floor & Decor and Wayfair”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Floor & Decor | $4.68 billion | 1.17 | $208.65 million | $2.23 | 23.01 |
| Wayfair | $12.46 billion | 1.21 | -$313.00 million | ($1.25) | -91.55 |
Floor & Decor has higher earnings, but lower revenue than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Floor & Decor has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.1, indicating that its stock price is 210% more volatile than the S&P 500.
Profitability
This table compares Floor & Decor and Wayfair’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Floor & Decor | 5.05% | 8.40% | 3.68% |
| Wayfair | -1.21% | -5.14% | 4.65% |
Summary
Wayfair beats Floor & Decor on 10 of the 15 factors compared between the two stocks.
About Floor & Decor
Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.
About Wayfair
Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.
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