Knoll (NYSE: KNL) and Herman Miller (NASDAQ:MLHR) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
92.4% of Knoll shares are held by institutional investors. Comparatively, 82.6% of Herman Miller shares are held by institutional investors. 1.9% of Knoll shares are held by company insiders. Comparatively, 1.9% of Herman Miller shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Knoll and Herman Miller’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Knoll||$1.13 billion||0.90||$80.16 million||$1.63||12.70|
|Herman Miller||$2.28 billion||0.84||$123.90 million||$2.02||15.94|
Herman Miller has higher revenue and earnings than Knoll. Knoll is trading at a lower price-to-earnings ratio than Herman Miller, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Knoll and Herman Miller, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knoll currently has a consensus target price of $27.00, indicating a potential upside of 30.43%. Herman Miller has a consensus target price of $40.50, indicating a potential upside of 25.78%. Given Knoll’s stronger consensus rating and higher possible upside, research analysts clearly believe Knoll is more favorable than Herman Miller.
Volatility and Risk
Knoll has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Herman Miller has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Knoll pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Herman Miller pays an annual dividend of $0.72 per share and has a dividend yield of 2.2%. Knoll pays out 36.8% of its earnings in the form of a dividend. Herman Miller pays out 35.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Knoll and Herman Miller’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Herman Miller beats Knoll on 10 of the 17 factors compared between the two stocks.
Knoll Company Profile
Knoll, Inc. is a manufacturer of commercial and residential furniture, accessories and coverings. The Company operates through three segments: Office, Studio and Coverings. The Office segment includes a range of workplace products that address workplace planning paradigms. These products include systems furniture, seating, storage, tables, desks and KnollExtra accessories, as well as the international sales of its North American Office products. The Studio segment includes KnollStudio products, DatesWeiser, HOLLY HUNT and Knoll Europe. The Coverings segment includes KnollTextiles, Spinneybeck (including Filzfelt), and Edelman Leather. These businesses provide a range of customers with fabrics, felt, leather and related architectural products. KnollStudio products include iconic seating, lounge furniture, side, cafe and dining chairs, as well as conference, training, dining and occasional tables.
Herman Miller Company Profile
Herman Miller, Inc. is engaged in the research, design, manufacture, sale and distribution of office furniture systems, seating products, home furnishings and related services, among others. The Company’s segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors.
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