Ethan Allen Interiors (NYSE: ETH) and Dorel Industries (OTCMKTS:DIIBF) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Ethan Allen Interiors pays an annual dividend of $0.76 per share and has a dividend yield of 3.4%. Dorel Industries pays an annual dividend of $1.20 per share and has a dividend yield of 5.2%. Ethan Allen Interiors pays out 52.4% of its earnings in the form of a dividend. Ethan Allen Interiors has raised its dividend for 7 consecutive years.
This table compares Ethan Allen Interiors and Dorel Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ethan Allen Interiors||4.80%||10.06%||7.13%|
Valuation & Earnings
This table compares Ethan Allen Interiors and Dorel Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ethan Allen Interiors||$763.39 million||0.81||$36.19 million||$1.45||15.55|
|Dorel Industries||$2.58 billion||0.29||$30.58 million||N/A||N/A|
Ethan Allen Interiors has higher earnings, but lower revenue than Dorel Industries.
Volatility & Risk
Ethan Allen Interiors has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Ethan Allen Interiors and Dorel Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ethan Allen Interiors||0||3||1||0||2.25|
Ethan Allen Interiors currently has a consensus target price of $28.00, suggesting a potential upside of 24.17%. Given Ethan Allen Interiors’ higher possible upside, research analysts clearly believe Ethan Allen Interiors is more favorable than Dorel Industries.
Insider and Institutional Ownership
0.8% of Dorel Industries shares are owned by institutional investors. 10.5% of Ethan Allen Interiors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Ethan Allen Interiors beats Dorel Industries on 10 of the 15 factors compared between the two stocks.
Ethan Allen Interiors Company Profile
Ethan Allen Interiors Inc. is an interior design company. The Company is a manufacturer and retailer of home furnishings. The Company operates through two segments, which include wholesale and retail. The Company is an international home fashion brand doing business in North America, Europe, Asia and the Middle East. It offers complimentary interior design service to its clients and sells a range of furniture products and decorative accents through ethanallen.com and a network of design centers in the United States and abroad. Its wholesale segment, principally involved in the development of the Ethan Allen brand, encompasses various aspects of design, manufacture, sourcing, sale, and distribution of its range of home furnishings and accents. The Company’s retail segment sells home furnishings and accents to consumers through a network of Company-operated design centers. As of June 30, 2016, the Company owned and operated nine manufacturing facilities.
Dorel Industries Company Profile
Dorel Industries Inc. designs, manufactures, markets, and distributes juvenile products, bicycles, and furniture worldwide. The company operates through three segments: Dorel Juvenile, Dorel Sports, and Dorel Home. The Dorel Juvenile segment engages in the design, sourcing, manufacturing, distribution, and retail of children's accessories, which include infant car seats, strollers, high chairs, and infant health and safety aids. This segment markets its products under the Safety 1st, Quinny, Maxi-Cosi, Tiny Love, Cosco, Bébé Confort, Infanti, Voyage, and Mother's Choice brands. The Dorel Sports segment offers recreational and leisure products, and accessories comprising bicycles, jogging strollers, scooters, and other recreational products under the Cannondale, Schwinn, GT, Mongoose, Caloi, Roadmaster, Iron Horse, and SUGOI brand names. The Dorel Home segment provides ready-to assemble furniture and home furnishings that consist of metal folding furniture, futons, children's furniture, step stools, ladders, and other imported furniture items. This segment markets its products under the Ameriwood, Altra, System Build, Ridgewood, DHP, Dorel Fine Furniture, Dorel Living, Signature Sleep, Baby Relax, and Cosco brands. The company sells its products to mass merchant discount chains, department stores, club format outlets, and hardware/home centers; Internet retailers, such as Walmart.com and Amazon; independent boutiques and juvenile specialty stores; and sporting goods chains. It also owns and operates 110 retail stores in Chile and Peru, as well as various factory outlet retail locations in Europe and Australia. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was founded in 1962 and is headquartered in Westmount, Canada.
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