Financial Contrast: Floor & Decor (NYSE:FND) vs. Williams-Sonoma (NYSE:WSM)

Floor & Decor (NYSE:FND) and Williams-Sonoma (NYSE:WSM) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

99.3% of Williams-Sonoma shares are owned by institutional investors. 2.1% of Floor & Decor shares are owned by company insiders. Comparatively, 1.1% of Williams-Sonoma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Floor & Decor has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Williams-Sonoma has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Valuation and Earnings

This table compares Floor & Decor and Williams-Sonoma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Floor & Decor	$4.46 billion	1.89	$205.87 million	$1.89	41.44
Williams-Sonoma	$7.71 billion	2.99	$1.13 billion	$8.83	21.25

Williams-Sonoma has higher revenue and earnings than Floor & Decor. Williams-Sonoma is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Floor & Decor and Williams-Sonoma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Floor & Decor	4.59%	9.49%	4.02%
Williams-Sonoma	14.35%	52.79%	21.64%

Analyst Ratings

This is a summary of current recommendations and price targets for Floor & Decor and Williams-Sonoma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Floor & Decor	2	9	5	0	2.19
Williams-Sonoma	1	10	7	1	2.42

Floor & Decor presently has a consensus target price of $88.56, suggesting a potential upside of 13.08%. Williams-Sonoma has a consensus target price of $178.41, suggesting a potential downside of 4.94%. Given Floor & Decor’s higher probable upside, equities analysts plainly believe Floor & Decor is more favorable than Williams-Sonoma.

Summary

Williams-Sonoma beats Floor & Decor on 11 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 Williams-Sonoma

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; personalized products and custom gifts under the Mark and Graham brand; and colorful and vintage-inspired heirloom products under the GreenRow, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry under the Outward brand. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.