Head to Head Review: Ethan Allen Interiors (ETD) and The Competition

Ethan Allen Interiors (NYSE:ETD) is one of 14 public companies in the “RETAIL – HOME FRN” industry, but how does it contrast to its rivals? We will compare Ethan Allen Interiors to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Volatility and Risk

Ethan Allen Interiors has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors’ rivals have a beta of 1.48, indicating that their average stock price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Ethan Allen Interiors and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	2	0	0	2.00
Ethan Allen Interiors Competitors	171	1317	2026	38	2.54

Ethan Allen Interiors currently has a consensus target price of $32.00, indicating a potential upside of 14.88%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 21.66%. Given Ethan Allen Interiors’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Ethan Allen Interiors has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	9.29%	12.08%	7.83%
Ethan Allen Interiors Competitors	6.52%	33.77%	8.67%

Dividends

Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 5.6%. Ethan Allen Interiors pays out 69.3% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.5% and pay out 49.0% of their earnings in the form of a dividend. Ethan Allen Interiors has raised its dividend for 1 consecutive years.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Ethan Allen Interiors	$646.22 million	$63.82 million	12.38
Ethan Allen Interiors Competitors	$26.26 billion	$2.36 billion	16.67

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

Institutional & Insider Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are held by institutional investors. 10.5% of Ethan Allen Interiors shares are held by insiders. Comparatively, 5.2% of shares of all “RETAIL – HOME FRN” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Ethan Allen Interiors rivals beat Ethan Allen Interiors on 11 of the 15 factors compared.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery comprising fabric-covered items, such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. It operates a network of design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.