Critical Survey: Mohawk Industries (MHK) vs. The Dixie Group (DXYN)

The Dixie Group (NASDAQ: DXYN) and Mohawk Industries (NYSE:MHK) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares The Dixie Group and Mohawk Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Dixie Group $407.63 million 0.15 $15.39 million ($0.11) -36.36
Mohawk Industries $9.15 billion 2.02 $1.75 billion $12.91 19.29

Mohawk Industries has higher revenue and earnings than The Dixie Group. The Dixie Group is trading at a lower price-to-earnings ratio than Mohawk Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.5% of The Dixie Group shares are held by institutional investors. Comparatively, 76.5% of Mohawk Industries shares are held by institutional investors. 15.1% of The Dixie Group shares are held by company insiders. Comparatively, 17.1% of Mohawk Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for The Dixie Group and Mohawk Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Dixie Group 0 0 0 0 N/A
Mohawk Industries 0 1 10 0 2.91

Mohawk Industries has a consensus price target of $266.50, suggesting a potential upside of 7.04%. Given Mohawk Industries’ higher probable upside, analysts clearly believe Mohawk Industries is more favorable than The Dixie Group.

Risk and Volatility

The Dixie Group has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Mohawk Industries has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares The Dixie Group and Mohawk Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Dixie Group -0.41% -1.62% -0.50%
Mohawk Industries 10.54% 16.45% 9.18%

Summary

Mohawk Industries beats The Dixie Group on 12 of the 12 factors compared between the two stocks.

The Dixie Group Company Profile

The Dixie Group, Inc. is engaged in marketing, manufacturing and selling of carpet and rugs. The Company offers its products to various residential and commercial customers through its various sales forces and brands. The Company operates through the carpet and rug manufacturing segment. The Company also provides carpet and yarn related services to other manufacturers. The Company’s brands include Fabrica, Masland Residential, Dixie Home, Atlas Carpet Mills, Masland Contract and Masland Hospitality. Dixie International sells its brands outside of the North American market. Fabrica markets and manufactures various residential carpet and custom rugs. Masland Contract markets and manufactures broadloom and modular carpet tile for the specified commercial marketplace. Masland Residential markets and manufactures design-driven specialty carpets and rugs for the residential marketplace. Dixie Home markets a range of tufted broadloom residential and commercial carpets.

Mohawk Industries Company Profile

Mohawk Industries, Inc. is a flooring manufacturer that creates products for residential and commercial spaces around the world. The Company’ segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). Its manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile and vinyl flooring. The Global Ceramic segment designs, manufactures, sources, distributes and markets a line of ceramic tile, porcelain tile and natural stone products used in the residential and commercial markets for both remodeling and new construction. The Flooring NA segment designs, manufactures, sources, distributes and markets carpet, laminate, carpet pad, rugs, hardwood and vinyl. The Flooring ROW segment designs, manufactures, sources, distributes and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard (MDF), chipboards, and vinyl flooring products.

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