Smith Douglas Homes (NYSE:SDHC) versus Ethan Allen Interiors (NYSE:ETD) Head-To-Head Survey

Smith Douglas Homes (NYSE:SDHC) and Ethan Allen Interiors (NYSE:ETD) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Smith Douglas Homes has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Ethan Allen Interiors has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Smith Douglas Homes and Ethan Allen Interiors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	2	7	1	0	1.90
Ethan Allen Interiors	1	2	0	0	1.67

Smith Douglas Homes presently has a consensus price target of $13.90, suggesting a potential upside of 36.81%. Ethan Allen Interiors has a consensus price target of $22.00, suggesting a potential upside of 5.41%. Given Smith Douglas Homes’ stronger consensus rating and higher probable upside, research analysts clearly believe Smith Douglas Homes is more favorable than Ethan Allen Interiors.

Profitability

This table compares Smith Douglas Homes and Ethan Allen Interiors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	0.64%	-0.19%	-0.14%
Ethan Allen Interiors	6.88%	7.88%	5.17%

Valuation and Earnings

This table compares Smith Douglas Homes and Ethan Allen Interiors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Douglas Homes	$971.12 million	0.53	$10.69 million	$0.72	14.11
Ethan Allen Interiors	$579.49 million	0.91	$39.88 million	$1.56	13.38

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

Insider & Institutional Ownership

83.8% of Ethan Allen Interiors shares are held by institutional investors. 84.2% of Smith Douglas Homes shares are held by company insiders. Comparatively, 9.9% of Ethan Allen Interiors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ethan Allen Interiors beats Smith Douglas Homes on 8 of the 14 factors compared between the two stocks.

About Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.

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.