Ethan Allen Interiors (ETD) & Its Rivals Critical Review

Ethan Allen Interiors (NYSE:ETD) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it contrast to its peers? We will compare Ethan Allen Interiors to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Earnings & Valuation

This table compares Ethan Allen Interiors and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ethan Allen Interiors	$579.49 million	$39.88 million	11.58
Ethan Allen Interiors Competitors	$5.33 billion	$313.99 million	9.15

Ethan Allen Interiors’ peers have higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ethan Allen Interiors	5.54%	6.12%	4.04%
Ethan Allen Interiors Competitors	-2.57%	-17.10%	1.24%

Institutional and Insider Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 9.9% of Ethan Allen Interiors shares are held by insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 8.6%. Ethan Allen Interiors pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Ethan Allen Interiors has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Ethan Allen Interiors and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ethan Allen Interiors	0	3	0	0	2.00
Ethan Allen Interiors Competitors	1815	7449	8173	317	2.39

Ethan Allen Interiors currently has a consensus price target of $22.00, suggesting a potential upside of 21.82%. As a group, “Household Durables” companies have a potential upside of 41.63%. Given Ethan Allen Interiors’ peers stronger consensus rating and higher possible upside, analysts plainly believe Ethan Allen Interiors has less favorable growth aspects than its peers.

Risk & Volatility

Ethan Allen Interiors has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors’ peers have a beta of 1.77, suggesting that their average stock price is 77% more volatile than the S&P 500.

Summary

Ethan Allen Interiors peers beat Ethan Allen Interiors on 9 of the 15 factors compared.

Ethan Allen Interiors Company Profile

Ethan Allen Interiors Inc. (NYSE: ETD) is a vertically integrated home furnishings company that designs, manufactures, markets and sells furniture and related products. Its offerings include living room, dining room and bedroom furniture, upholstery, case goods, home accents, mattresses and other furnishings for residential interiors. The company sells its products through a network of Ethan Allen Design Centers, interior designers and independent retailers, as well as through its website and other digital channels.