Analyzing MillerKnoll (MLKN) and Its Peers

MillerKnoll (NASDAQ:MLKN) is one of 17 publicly-traded companies in the “FURNITURE” industry, but how does it compare to its peers? We will compare MillerKnoll to similar businesses based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, risk and institutional ownership.

Profitability

This table compares MillerKnoll and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MillerKnoll	-1.01%	10.44%	3.40%
MillerKnoll Competitors	-4.43%	-22.85%	-2.69%

Risk & Volatility

MillerKnoll has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, MillerKnoll’s peers have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Dividends

MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 3.6%. MillerKnoll pays out -133.9% of its earnings in the form of a dividend. As a group, “FURNITURE” companies pay a dividend yield of 3.4% and pay out -119.7% of their earnings in the form of a dividend. MillerKnoll is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

87.5% of MillerKnoll shares are held by institutional investors. Comparatively, 62.4% of shares of all “FURNITURE” companies are held by institutional investors. 3.9% of MillerKnoll shares are held by insiders. Comparatively, 5.4% of shares of all “FURNITURE” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares MillerKnoll and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MillerKnoll	$3.67 billion	-$36.90 million	-37.04
MillerKnoll Competitors	$1.43 billion	-$10.98 million	5.49

MillerKnoll has higher revenue, but lower earnings than its peers. MillerKnoll is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for MillerKnoll and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MillerKnoll	0	2	0	0	2.00
MillerKnoll Competitors	51	512	310	53	2.39

As a group, “FURNITURE” companies have a potential upside of 33.10%. Given MillerKnoll’s peers stronger consensus rating and higher possible upside, analysts clearly believe MillerKnoll has less favorable growth aspects than its peers.

Summary

MillerKnoll beats its peers on 8 of the 15 factors compared.

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.