Floor & Decor (NYSE:FND – Get Free Report) and Wesfarmers (OTCMKTS:WFAFY – Get Free Report) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Earnings and Valuation
This table compares Floor & Decor and Wesfarmers’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Floor & Decor | $4.26 billion | 2.62 | $298.20 million | $2.67 | 39.35 |
| Wesfarmers | N/A | N/A | N/A | $1.19 | 13.78 |
Floor & Decor has higher revenue and earnings than Wesfarmers. Wesfarmers 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
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Floor & Decor | 1 | 8 | 7 | 0 | 2.38 |
| Wesfarmers | 0 | 0 | 0 | 0 | N/A |
Floor & Decor currently has a consensus price target of $103.19, suggesting a potential downside of 1.78%. Given Floor & Decor’s higher possible upside, equities research analysts clearly believe Floor & Decor is more favorable than Wesfarmers.
Profitability
This table compares Floor & Decor and Wesfarmers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Floor & Decor | 6.55% | 16.94% | 6.60% |
| Wesfarmers | N/A | N/A | N/A |
Insider and Institutional Ownership
0.0% of Wesfarmers shares are held by institutional investors. 2.5% of Floor & Decor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Floor & Decor beats Wesfarmers on 9 of the 10 factors compared between the two stocks.
About Floor & Decor
Floor & Decor Holdings, Inc. together with its subsidiaries, operates as a multi-channel specialty retailer and commercial flooring distributor in Georgia. The company offers tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative accessories, wall tiles, and installation materials and tools. It also sells products through its Website, FloorandDecor.com. The company serves installers, commercial businesses, and other sectors. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.
About Wesfarmers
Wesfarmers Ltd. engages in the provision of fresh food, groceries, general merchandise, liquor, fuel, and financial services. It operates through the following segments: Bunnings; Kmart Group; Chemicals, Energy, and Fertilisers (WesCEF); Officeworks; Industrial and Safety; Health; and Other. The Bunnings segment consists of retailers of building materials and home and garden improvement products and servicing households and commercial customers including builders, trades, and businesses. The Kmart Group segment comprises of Kmart and Target which are retailers of apparel and general merchandise, including toys, leisure, entertainment, home, and consumable; and Catch which is an online retailer offering branded products on a first-party basis and a third-party online marketplace. The WesCEF segment refers to manufacturer and marketer of chemicals for industry, mining, mineral processing, broadacre and horticultural fertilisers, marketer and distributor of LPG and LNG; and manufacturer of wood-plastic composite decking and screening products. The Officeworks segment covers the retail and supply of office products and solutions for households, small-to-medium sized businesses, and the
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