Valvoline (NYSE:VVV – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Profitability
This table compares Valvoline and Floor & Decor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valvoline | 5.17% | 65.12% | 7.11% |
| Floor & Decor | 5.05% | 8.40% | 3.68% |
Risk & Volatility
Valvoline has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valvoline | 0 | 5 | 13 | 0 | 2.72 |
| Floor & Decor | 5 | 12 | 4 | 0 | 1.95 |
Valvoline currently has a consensus price target of $41.17, suggesting a potential upside of 13.82%. Floor & Decor has a consensus price target of $54.70, suggesting a potential upside of 2.31%. Given Valvoline’s stronger consensus rating and higher probable upside, equities analysts clearly believe Valvoline is more favorable than Floor & Decor.
Earnings & Valuation
This table compares Valvoline 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 | |
| Valvoline | $1.96 billion | 2.35 | $210.70 million | $0.80 | 45.21 |
| Floor & Decor | $4.75 billion | 1.20 | $208.65 million | $2.23 | 23.97 |
Valvoline has higher earnings, but lower revenue than Floor & Decor. Floor & Decor is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
96.1% of Valvoline shares are held by institutional investors. 0.7% of Valvoline shares are held by insiders. Comparatively, 1.8% of Floor & Decor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Valvoline beats Floor & Decor on 10 of the 14 factors compared between the two stocks.
About Valvoline
Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.
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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