Head-To-Head Review: Ethan Allen Interiors (NYSE:ETD) vs. FGI Industries (NASDAQ:FGI)

Ethan Allen Interiors (NYSE:ETD) and FGI Industries (NASDAQ:FGI) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility and Risk

Ethan Allen Interiors has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, FGI Industries has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	8.39%	10.92%	7.10%
FGI Industries	-1.06%	1.73%	0.53%

Earnings & Valuation

This table compares Ethan Allen Interiors and FGI Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ethan Allen Interiors	$614.65 million	1.18	$51.60 million	$2.01	14.18
FGI Industries	$131.82 million	0.06	-$1.20 million	($0.75)	-5.27

Ethan Allen Interiors has higher revenue and earnings than FGI Industries. FGI Industries is trading at a lower price-to-earnings ratio than Ethan Allen Interiors, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.8% of Ethan Allen Interiors shares are owned by institutional investors. 10.5% of Ethan Allen Interiors shares are owned by company insiders. Comparatively, 5.0% of FGI Industries shares are owned by company 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.

Analyst Recommendations

This is a summary of recent recommendations for Ethan Allen Interiors and FGI Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	2	0	0	2.00
FGI Industries	0	0	0	0	0.00

Ethan Allen Interiors presently has a consensus target price of $30.00, indicating a potential upside of 5.26%. Given Ethan Allen Interiors’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Ethan Allen Interiors is more favorable than FGI Industries.

Summary

Ethan Allen Interiors beats FGI Industries on 12 of the 13 factors compared between the two stocks.

About Ethan Allen Interiors

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.

About FGI Industries

FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.