Analyzing Wayfair (NYSE:W) & Floor & Decor (NYSE:FND)

Wayfair (NYSE:W) and Floor & Decor (NYSE:FND) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

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%	4.63%
Floor & Decor	5.05%	8.40%	3.68%

Insider & Institutional Ownership

89.7% of Wayfair shares are held by institutional investors. 18.4% of Wayfair 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 stock is poised for long-term growth.

Risk and Volatility

Wayfair has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wayfair and Floor & Decor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wayfair	$12.46 billion	1.18	-$313.00 million	($1.25)	-88.90
Floor & Decor	$4.68 billion	1.07	$208.65 million	$2.23	21.56

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 Ratings

This is a summary of current ratings for Wayfair and Floor & Decor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wayfair	1	12	14	4	2.68
Floor & Decor	6	12	3	0	1.86

Wayfair currently has a consensus price target of $128.68, indicating a potential upside of 15.80%. Floor & Decor has a consensus price target of $54.45, indicating a potential upside of 13.23%. Given Wayfair’s stronger consensus rating and higher possible upside, equities 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. is an e-commerce company focused on furniture and home furnishings. Its online platform offers products for living rooms, bedrooms, kitchens, bathrooms, outdoor spaces and other areas of the home, including furniture, décor, lighting, rugs and housewares. The company operates a portfolio of retail brands, including Wayfair, AllModern, Birch Lane, Joss & Main and Perigold. It serves customers primarily in the United States and Canada, as well as in select international markets. Wayfair was founded in 2002 by Niraj Shah and Steve Conine as CSN Stores and adopted the Wayfair name in 2011.

About Floor & Decor

Floor & Decor Holdings, Inc. is a specialty retailer of hard-surface flooring and related products. Its assortment includes tile, natural stone, wood, laminate and vinyl flooring, along with installation materials, tools and decorative accessories. The company serves both professional flooring contractors and homeowners through warehouse-format stores and online sales. Many stores also offer design services and product displays to help customers plan residential and commercial projects. Founded in 2000 and headquartered in Atlanta, Georgia, Floor & Decor operates stores across the United States.