Head to Head Analysis: Mohawk Industries (MHK) versus The Competition

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

Insider and Institutional Ownership

79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Mohawk Industries and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mohawk Industries	$10.79 billion	$369.90 million	18.28
Mohawk Industries Competitors	$5.27 billion	$319.19 million	27.34

Mohawk Industries has higher revenue and earnings than its peers. Mohawk Industries is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Mohawk Industries has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Mohawk Industries’ peers have a beta of 1.73, indicating that their average share price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Mohawk Industries and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mohawk Industries	0	12	3	1	2.31
Mohawk Industries Competitors	1715	7258	8032	299	2.40

Mohawk Industries currently has a consensus target price of $130.50, indicating a potential downside of 5.42%. As a group, “Household Durables” companies have a potential upside of 44.00%. Given Mohawk Industries’ peers stronger consensus rating and higher possible upside, analysts plainly believe Mohawk Industries has less favorable growth aspects than its peers.

Profitability

This table compares Mohawk Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mohawk Industries	4.15%	7.50%	4.60%
Mohawk Industries Competitors	-21.11%	-14.52%	1.23%

Summary

Mohawk Industries beats its peers on 7 of the 13 factors compared.

About Mohawk Industries

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.