Head-To-Head Survey: Interface (NASDAQ:TILE) versus Crown Crafts (NASDAQ:CRWS)

Crown Crafts (NASDAQ:CRWS) and Interface (NASDAQ:TILE) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Volatility and Risk

Crown Crafts has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Interface has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Insider & Institutional Ownership

30.2% of Crown Crafts shares are owned by institutional investors. Comparatively, 98.3% of Interface shares are owned by institutional investors. 11.6% of Crown Crafts shares are owned by insiders. Comparatively, 2.3% of Interface shares are owned 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.

Dividends

Crown Crafts pays an annual dividend of $0.32 per share and has a dividend yield of 11.4%. Interface pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Crown Crafts pays out -35.6% of its earnings in the form of a dividend. Interface pays out 2.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crown Crafts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for Crown Crafts and Interface, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crown Crafts	0	0	0	0	0.00
Interface	0	0	1	0	3.00

Interface has a consensus target price of $32.00, indicating a potential upside of 28.62%. Given Interface’s stronger consensus rating and higher possible upside, analysts clearly believe Interface is more favorable than Crown Crafts.

Profitability

This table compares Crown Crafts and Interface’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crown Crafts	-10.72%	3.36%	1.81%
Interface	7.08%	18.97%	8.07%

Earnings & Valuation

This table compares Crown Crafts and Interface”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crown Crafts	$87.25 million	0.34	-$9.36 million	($0.90)	-3.12
Interface	$1.32 billion	1.11	$86.95 million	$1.62	15.36

Interface has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than Interface, indicating that it is currently the more affordable of the two stocks.

Summary

Interface beats Crown Crafts on 13 of the 16 factors compared between the two stocks.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.

About Interface

Interface, Inc. designs, produces, and sells modular carpet products primarily worldwide. The company operates in two segments, Americas (AMS), and Europe, Africa, Asia and Australia (EAAA). The company offers modular carpets under the Interface and FLOR brand names; luxury vinyl tiles; carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; and modular resilient flooring products. It also provides carpet replacement, installation, and maintenance services; and rubber flooring under the norament and noraplan brand names; as well as produces and sells an adapted version of its carpet tile for the healthcare facilities market. In addition, the company sells a proprietary antimicrobial chemical compound under the Intersept name; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. The company sells its products directly to end-users, as well as indirectly through independent contractors, installers, or distributors. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.