Financial Analysis: Monro Muffler Brake (NASDAQ:MNRO) versus Floor & Decor (NYSE:FND)

Monro Muffler Brake (NASDAQ:MNRO – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Monro Muffler Brake and Floor & Decor”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monro Muffler Brake $1.14 billion 0.38 $2.17 million $0.22 63.07
Floor & Decor $4.68 billion 1.00 $208.65 million $2.15 20.49

Floor & Decor has higher revenue and earnings than Monro Muffler Brake. Floor & Decor is trading at a lower price-to-earnings ratio than Monro Muffler Brake, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Monro Muffler Brake and Floor & Decor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monro Muffler Brake 1 2 2 0 2.20
Floor & Decor 3 12 5 0 2.10

Monro Muffler Brake presently has a consensus price target of $24.33, indicating a potential upside of 75.38%. Floor & Decor has a consensus price target of $58.21, indicating a potential upside of 32.12%. Given Monro Muffler Brake’s stronger consensus rating and higher possible upside, analysts clearly believe Monro Muffler Brake is more favorable than Floor & Decor.

Risk and Volatility

Monro Muffler Brake has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Profitability

This table compares Monro Muffler Brake and Floor & Decor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monro Muffler Brake 0.71% 0.80% 0.30%
Floor & Decor 4.93% 8.20% 3.58%

Summary

Floor & Decor beats Monro Muffler Brake on 9 of the 12 factors compared between the two stocks.

About Monro Muffler Brake

(Get Free Report)

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.

About Floor & Decor

(Get Free Report)

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

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