Flexsteel Industries (NASDAQ:FLXS – Get Free Report) and D.R. Horton (NYSE:DHI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Dividends
Flexsteel Industries pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. D.R. Horton pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. Flexsteel Industries pays out 16.1% of its earnings in the form of a dividend. D.R. Horton pays out 17.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Flexsteel Industries has raised its dividend for 1 consecutive years and D.R. Horton has raised its dividend for 10 consecutive years. Flexsteel Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
36.3% of Flexsteel Industries shares are held by institutional investors. Comparatively, 90.6% of D.R. Horton shares are held by institutional investors. 11.2% of Flexsteel Industries shares are held by company insiders. Comparatively, 0.7% of D.R. Horton shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Flexsteel Industries | 7.21% | 16.11% | 9.67% |
| D.R. Horton | 9.15% | 12.47% | 8.59% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Flexsteel Industries and D.R. Horton, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flexsteel Industries | 0 | 3 | 1 | 0 | 2.25 |
| D.R. Horton | 0 | 10 | 5 | 0 | 2.33 |
D.R. Horton has a consensus price target of $166.92, suggesting a potential upside of 11.99%. Given D.R. Horton’s stronger consensus rating and higher probable upside, analysts clearly believe D.R. Horton is more favorable than Flexsteel Industries.
Risk & Volatility
Flexsteel Industries has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares Flexsteel Industries and D.R. Horton”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flexsteel Industries | $459.18 million | 0.94 | $33.13 million | $6.21 | 12.98 |
| D.R. Horton | $33.35 billion | 1.25 | $3.59 billion | $10.51 | 14.18 |
D.R. Horton has higher revenue and earnings than Flexsteel Industries. Flexsteel Industries is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.
Summary
D.R. Horton beats Flexsteel Industries on 12 of the 17 factors compared between the two stocks.
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.
About D.R. Horton
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.
Receive News & Ratings for Flexsteel Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Flexsteel Industries and related companies with MarketBeat.com's FREE daily email newsletter.
