Wayfair (NYSE:W – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Insider and Institutional Ownership
89.7% of Wayfair shares are owned by institutional investors. 18.4% of Wayfair shares are owned by company insiders. Comparatively, 1.8% of Floor & Decor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Wayfair and Floor & Decor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wayfair | -1.21% | -5.14% | 4.65% |
| Floor & Decor | 5.05% | 8.40% | 3.68% |
Risk and Volatility
Wayfair has a beta of 3.1, indicating that its stock price is 210% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Valuation and Earnings
This table compares Wayfair and Floor & Decor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wayfair | $12.46 billion | 1.21 | -$313.00 million | ($1.25) | -91.55 |
| Floor & Decor | $4.68 billion | 1.17 | $208.65 million | $2.23 | 23.01 |
Floor & Decor has lower revenue, but higher earnings than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Wayfair and Floor & Decor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wayfair | 1 | 11 | 15 | 3 | 2.67 |
| Floor & Decor | 5 | 12 | 4 | 0 | 1.95 |
Wayfair currently has a consensus target price of $128.96, suggesting a potential upside of 12.69%. Floor & Decor has a consensus target price of $54.70, suggesting a potential upside of 6.59%. Given Wayfair’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Wayfair is more favorable than Floor & Decor.
Summary
Wayfair beats Floor & Decor on 10 of the 15 factors compared between the two stocks.
About Wayfair
Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.
About Floor & Decor
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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