Dorel Industries (DIIBF) versus Ethan Allen Interiors (ETH) Head-To-Head Analysis

Dorel Industries (OTCMKTS: DIIBF) and Ethan Allen Interiors (NYSE:ETH) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

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This table compares Dorel Industries and Ethan Allen Interiors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorel Industries 1.19% 6.46% 3.13%
Ethan Allen Interiors 4.80% 10.06% 7.13%

Volatility and Risk

Dorel Industries has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Insider and Institutional Ownership

0.8% of Dorel Industries shares are owned by institutional investors. 10.5% of Ethan Allen Interiors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dorel Industries and Ethan Allen Interiors’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorel Industries $2.58 billion 0.29 $30.58 million N/A N/A
Ethan Allen Interiors $763.39 million 0.81 $36.19 million $1.45 15.48

Ethan Allen Interiors has lower revenue, but higher earnings than Dorel Industries.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dorel Industries and Ethan Allen Interiors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorel Industries 0 0 0 0 N/A
Ethan Allen Interiors 0 3 1 0 2.25

Ethan Allen Interiors has a consensus price target of $28.00, suggesting a potential upside of 24.72%. Given Ethan Allen Interiors’ higher probable upside, analysts clearly believe Ethan Allen Interiors is more favorable than Dorel Industries.

Dividends

Dorel Industries pays an annual dividend of $1.20 per share and has a dividend yield of 5.2%. Ethan Allen Interiors pays an annual dividend of $0.76 per share and has a dividend yield of 3.4%. Ethan Allen Interiors pays out 52.4% of its earnings in the form of a dividend. Ethan Allen Interiors has increased its dividend for 7 consecutive years.

Summary

Ethan Allen Interiors beats Dorel Industries on 10 of the 15 factors compared between the two stocks.

About Dorel Industries

Dorel Industries Inc. designs, manufactures, markets, and distributes juvenile products, bicycles, and furniture worldwide. The company operates through three segments: Dorel Juvenile, Dorel Sports, and Dorel Home. The Dorel Juvenile segment engages in the design, sourcing, manufacturing, distribution, and retail of children's accessories, which include infant car seats, strollers, high chairs, and infant health and safety aids. This segment markets its products under the Safety 1st, Quinny, Maxi-Cosi, Tiny Love, Cosco, Bébé Confort, Infanti, Voyage, and Mother's Choice brands. The Dorel Sports segment offers recreational and leisure products, and accessories comprising bicycles, jogging strollers, scooters, and other recreational products under the Cannondale, Schwinn, GT, Mongoose, Caloi, Roadmaster, Iron Horse, and SUGOI brand names. The Dorel Home segment provides ready-to assemble furniture and home furnishings that consist of metal folding furniture, futons, children's furniture, step stools, ladders, and other imported furniture items. This segment markets its products under the Ameriwood, Altra, System Build, Ridgewood, DHP, Dorel Fine Furniture, Dorel Living, Signature Sleep, Baby Relax, and Cosco brands. The company sells its products to mass merchant discount chains, department stores, club format outlets, and hardware/home centers; Internet retailers, such as Walmart.com and Amazon; independent boutiques and juvenile specialty stores; and sporting goods chains. It also owns and operates 110 retail stores in Chile and Peru, as well as various factory outlet retail locations in Europe and Australia. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was founded in 1962 and is headquartered in Westmount, Canada.

About Ethan Allen Interiors

Ethan Allen Interiors Inc. is an interior design company. The Company is a manufacturer and retailer of home furnishings. The Company operates through two segments, which include wholesale and retail. The Company is an international home fashion brand doing business in North America, Europe, Asia and the Middle East. It offers complimentary interior design service to its clients and sells a range of furniture products and decorative accents through ethanallen.com and a network of design centers in the United States and abroad. Its wholesale segment, principally involved in the development of the Ethan Allen brand, encompasses various aspects of design, manufacture, sourcing, sale, and distribution of its range of home furnishings and accents. The Company’s retail segment sells home furnishings and accents to consumers through a network of Company-operated design centers. As of June 30, 2016, the Company owned and operated nine manufacturing facilities.

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