The Dixie Group (NASDAQ: DXYN) and Interface (NASDAQ:IFSIA) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

The Dixie Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Interface has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

62.9% of The Dixie Group shares are owned by institutional investors. 15.1% of The Dixie Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The Dixie Group and Interface’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Dixie Group -0.41% -1.62% -0.50%
Interface 7.55% 23.48% 9.83%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Dixie Group and Interface, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Dixie Group 0 0 0 0 N/A
Interface 0 0 0 0 N/A

Valuation & Earnings

This table compares The Dixie Group and Interface’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Dixie Group $397.45 million 0.16 -$5.27 million ($0.11) -36.36
Interface N/A N/A N/A $0.86 26.57

Interface has higher revenue, but lower earnings than The Dixie Group. The Dixie Group 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 The Dixie Group on 5 of the 8 factors compared between the two stocks.

The Dixie Group Company Profile

The Dixie Group, Inc. is engaged in marketing, manufacturing and selling of carpet and rugs. The Company offers its products to various residential and commercial customers through its various sales forces and brands. The Company operates through the carpet and rug manufacturing segment. The Company also provides carpet and yarn related services to other manufacturers. The Company’s brands include Fabrica, Masland Residential, Dixie Home, Atlas Carpet Mills, Masland Contract and Masland Hospitality. Dixie International sells its brands outside of the North American market. Fabrica markets and manufactures various residential carpet and custom rugs. Masland Contract markets and manufactures broadloom and modular carpet tile for the specified commercial marketplace. Masland Residential markets and manufactures design-driven specialty carpets and rugs for the residential marketplace. Dixie Home markets a range of tufted broadloom residential and commercial carpets.

Interface Company Profile

Interface Inc. is engaged in design, production and sale of modular carpet, also known as carpet tile. As of January 1, 2017, the Company marketed its modular carpets in over 110 countries under the brand names Interface and FLOR. The Company operates through three segments: Americas, Europe and Asia-Pacific. The Company distributes its products through two primary channels, including direct sales to end users and indirect sales through independent contractors or distributors. The Company sells an antimicrobial chemical compound under the trademark Intersept that the Company incorporates in all of its modular carpet products. It also sells its TacTiles carpet tile installation system, along with a range of traditional adhesives and products for carpet installation and maintenance that are manufactured by a third party. It also provides turnkey project management services for national accounts and other customers through its InterfaceSERVICES business.

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