Mohawk Industries (MHK) & Its Rivals Critical Analysis

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

Earnings & Valuation

This table compares Mohawk Industries and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mohawk Industries	$10.79 billion	$369.90 million	17.71
Mohawk Industries Competitors	$130.89 billion	$313.99 million	9.46

Mohawk Industries’ rivals have higher revenue, but lower earnings than Mohawk Industries. Mohawk Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Mohawk Industries has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Mohawk Industries’ rivals have a beta of 1.77, meaning that their average share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mohawk Industries and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mohawk Industries	1	10	4	0	2.20
Mohawk Industries Competitors	1811	7438	8164	316	2.39

Mohawk Industries currently has a consensus target price of $138.92, suggesting a potential downside of 7.92%. As a group, “Household Durables” companies have a potential upside of 39.76%. Given Mohawk Industries’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Mohawk Industries has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by insiders. Comparatively, 18.3% 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 company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mohawk Industries	4.63%	7.47%	4.59%
Mohawk Industries Competitors	-2.57%	-17.04%	1.23%

Summary

Mohawk Industries rivals beat Mohawk Industries on 7 of the 13 factors compared.

Mohawk Industries Company Profile

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.