Analyzing ATRenew (NYSE:RERE) and Floor & Decor (NYSE:FND)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Floor & Decor 4.93% 8.20% 3.58%
ATRenew 2.01% 12.32% 8.30%

Insider & Institutional Ownership

19.3% of ATRenew shares are held by institutional investors. 1.8% of Floor & Decor shares are held by insiders. Comparatively, 10.7% of ATRenew shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Floor & Decor and ATRenew”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Floor & Decor $4.71 billion 1.02 $208.65 million $2.15 21.03
ATRenew $3.01 billion 0.29 $48.09 million $0.29 13.81

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

Volatility and Risk

Floor & Decor has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Floor & Decor and ATRenew, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Floor & Decor 3 13 5 0 2.10
ATRenew 0 1 2 0 2.67

Floor & Decor presently has a consensus target price of $57.65, suggesting a potential upside of 27.49%. ATRenew has a consensus target price of $5.50, suggesting a potential upside of 37.33%. Given ATRenew’s stronger consensus rating and higher possible upside, analysts clearly believe ATRenew is more favorable than Floor & Decor.

Summary

Floor & Decor beats ATRenew on 8 of the 14 factors compared between the two stocks.

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.

About ATRenew

(Get Free Report)

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.

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