Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and Flexsteel Industries (NASDAQ:FLXS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Dorel Industries and Flexsteel Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
| Flexsteel Industries | 0 | 2 | 1 | 1 | 2.75 |
Flexsteel Industries has a consensus target price of $86.00, indicating a potential upside of 16.78%. Given Flexsteel Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Flexsteel Industries is more favorable than Dorel Industries.
Earnings & Valuation
This table compares Dorel Industries and Flexsteel Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($4.16) | -0.23 |
| Flexsteel Industries | $459.18 million | 0.67 | $33.13 million | $6.14 | 11.99 |
Flexsteel Industries has lower revenue, but higher earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Flexsteel Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dorel Industries and Flexsteel Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorel Industries | -12.73% | N/A | -11.89% |
| Flexsteel Industries | 6.75% | 15.92% | 9.31% |
Insider & Institutional Ownership
36.3% of Flexsteel Industries shares are held by institutional investors. 19.3% of Dorel Industries shares are held by insiders. Comparatively, 11.2% of Flexsteel Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Dorel Industries has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Flexsteel Industries has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.
Summary
Flexsteel Industries beats Dorel Industries on 12 of the 15 factors compared between the two stocks.
About Dorel Industries
Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.
About Flexsteel Industries
Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.
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