Ethan Allen Interiors (NYSE:ETD – Get Free Report) and Fortune Brands Innovations (NYSE:FBIN – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for Ethan Allen Interiors and Fortune Brands Innovations, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ethan Allen Interiors | 0 | 2 | 0 | 0 | 2.00 |
| Fortune Brands Innovations | 0 | 4 | 6 | 0 | 2.60 |
Ethan Allen Interiors currently has a consensus target price of $30.00, indicating a potential upside of 5.26%. Fortune Brands Innovations has a consensus target price of $77.40, indicating a potential upside of 38.64%. Given Fortune Brands Innovations’ stronger consensus rating and higher possible upside, analysts clearly believe Fortune Brands Innovations is more favorable than Ethan Allen Interiors.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Ethan Allen Interiors | 8.39% | 10.92% | 7.10% |
| Fortune Brands Innovations | 8.75% | 19.78% | 7.14% |
Risk & Volatility
Ethan Allen Interiors has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Fortune Brands Innovations has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Insider & Institutional Ownership
83.8% of Ethan Allen Interiors shares are held by institutional investors. Comparatively, 87.6% of Fortune Brands Innovations shares are held by institutional investors. 10.5% of Ethan Allen Interiors shares are held by insiders. Comparatively, 1.0% of Fortune Brands Innovations shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Ethan Allen Interiors and Fortune Brands Innovations”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ethan Allen Interiors | $614.65 million | 1.18 | $63.82 million | $2.01 | 14.18 |
| Fortune Brands Innovations | $4.53 billion | 1.48 | $471.90 million | $3.18 | 17.56 |
Fortune Brands Innovations has higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a lower price-to-earnings ratio than Fortune Brands Innovations, indicating that it is currently the more affordable of the two stocks.
Dividends
Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 5.5%. Fortune Brands Innovations pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Ethan Allen Interiors pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fortune Brands Innovations pays out 31.4% of its earnings in the form of a dividend. Ethan Allen Interiors has increased its dividend for 1 consecutive years and Fortune Brands Innovations has increased its dividend for 2 consecutive years.
Summary
Fortune Brands Innovations beats Ethan Allen Interiors on 15 of the 17 factors compared between the two stocks.
About Ethan Allen Interiors
Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery comprising fabric-covered items, such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. It operates a network of design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
About Fortune Brands Innovations
Fortune Brands Innovations, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications in the United States and internationally. The company operates through three segments: Water, Outdoors, and Security. The Water segment manufactures or assembles, and sells faucets, accessories, kitchen sinks, and waste disposals under the Moen, ROHL, Riobel, Victoria+Albert, Perrin & Rowe, Aqualisa, Shaws, Emtek, and Schaub brands. The Outdoors segment manufactures and sells fiberglass and steel entry door systems under the Therma-Tru brand; storm, screen, and security doors under the Larson brand; composite decking, railing, and cladding under the Fiberon brand; and urethane millwork under the Fypon brand. The Security segment manufactures, sources, and distributes locks, safety and security devices, and electronic security products under the Master Lock, American Lock, Yale, and August brands; and fire-resistant safes, security containers, and commercial cabinets under the SentrySafe brand. The company sells its products through various sales channels, including kitchen and bath dealers, wholesalers oriented toward builders or professional remodelers, industrial and locksmith distributors, do-it-yourself remodeling-oriented home centers, showrooms, e-commerce, and other retail outlets. Fortune Brands Innovations, Inc. was incorporated in 1988 and is headquartered in Deerfield, Illinois.
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