Comparing American Woodmark (NASDAQ:AMWD) & MillerKnoll (NASDAQ:MLKN)

American Woodmark (NASDAQ:AMWD) and MillerKnoll (NASDAQ:MLKN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for American Woodmark and MillerKnoll, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Woodmark	1	1	2	0	2.25
MillerKnoll	0	2	0	0	2.00

American Woodmark presently has a consensus price target of $83.3333, indicating a potential upside of 34.09%. Given American Woodmark’s stronger consensus rating and higher possible upside, analysts clearly believe American Woodmark is more favorable than MillerKnoll.

Insider and Institutional Ownership

95.5% of American Woodmark shares are held by institutional investors. Comparatively, 87.5% of MillerKnoll shares are held by institutional investors. 1.7% of American Woodmark shares are held by insiders. Comparatively, 3.9% of MillerKnoll shares are held 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.

Risk and Volatility

American Woodmark has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, MillerKnoll has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Earnings and Valuation

This table compares American Woodmark and MillerKnoll”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Woodmark	$1.71 billion	0.53	$99.46 million	$6.48	9.59
MillerKnoll	$3.67 billion	0.37	-$36.90 million	($0.56)	-35.32

American Woodmark has higher earnings, but lower revenue than MillerKnoll. MillerKnoll is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Woodmark and MillerKnoll’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Woodmark	5.82%	11.09%	6.35%
MillerKnoll	-1.01%	10.44%	3.40%

Summary

American Woodmark beats MillerKnoll on 11 of the 14 factors compared between the two stocks.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.

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.