Floor & Decor (NYSE:FND – Get Free Report) and Wayfair (NYSE:W – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Profitability
This table compares Floor & Decor and Wayfair’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Floor & Decor | 5.05% | 8.40% | 3.68% |
| Wayfair | -1.21% | -5.14% | 4.63% |
Insider & Institutional Ownership
89.7% of Wayfair shares are held by institutional investors. 1.8% of Floor & Decor shares are held by company insiders. Comparatively, 18.4% of Wayfair shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Floor & Decor has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.1, meaning that its stock price is 210% more volatile than the S&P 500.
Earnings and Valuation
This table compares Floor & Decor and Wayfair”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Floor & Decor | $4.75 billion | 1.13 | $208.65 million | $2.23 | 23.07 |
| Wayfair | $12.46 billion | 1.20 | -$313.00 million | ($1.25) | -90.23 |
Floor & Decor has higher earnings, but lower revenue than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Floor & Decor and Wayfair, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Floor & Decor | 5 | 12 | 4 | 0 | 1.95 |
| Wayfair | 1 | 12 | 15 | 3 | 2.65 |
Floor & Decor presently has a consensus target price of $54.70, indicating a potential upside of 6.32%. Wayfair has a consensus target price of $129.00, indicating a potential upside of 14.37%. Given Wayfair’s stronger consensus rating and higher possible upside, analysts plainly believe Wayfair is more favorable than Floor & Decor.
Summary
Wayfair beats Floor & Decor on 11 of the 15 factors compared between the two stocks.
About Floor & Decor
Floor & Decor Holdings, Inc. is a specialty retailer of hard-surface flooring and related products. Its assortment includes tile, natural stone, wood, laminate and vinyl flooring, along with installation materials, tools and decorative accessories. The company serves both professional flooring contractors and homeowners through warehouse-format stores and online sales. Many stores also offer design services and product displays to help customers plan residential and commercial projects. Founded in 2000 and headquartered in Atlanta, Georgia, Floor & Decor operates stores across the United States.
About Wayfair
Wayfair Inc. is an e-commerce company focused on furniture and home furnishings. Its online platform offers products for living rooms, bedrooms, kitchens, bathrooms, outdoor spaces and other areas of the home, including furniture, décor, lighting, rugs and housewares. The company operates a portfolio of retail brands, including Wayfair, AllModern, Birch Lane, Joss & Main and Perigold. It serves customers primarily in the United States and Canada, as well as in select international markets. Wayfair was founded in 2002 by Niraj Shah and Steve Conine as CSN Stores and adopted the Wayfair name in 2011.
Receive News & Ratings for Floor & Decor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Floor & Decor and related companies with MarketBeat.com's FREE daily email newsletter.
