Floor & Decor (NYSE:FND) and OneWater Marine (NASDAQ:ONEW) Critical Review

Floor & Decor (NYSE:FND) and OneWater Marine (NASDAQ:ONEW) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

94.3% of OneWater Marine shares are owned by institutional investors. 1.8% of Floor & Decor shares are owned by insiders. Comparatively, 19.5% of OneWater Marine shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Floor & Decor and OneWater Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Floor & Decor	4.93%	8.20%	3.58%
OneWater Marine	-6.72%	2.20%	0.44%

Analyst Ratings

This is a summary of current recommendations and price targets for Floor & Decor and OneWater Marine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Floor & Decor	2	13	5	0	2.15
OneWater Marine	1	2	2	0	2.20

Floor & Decor presently has a consensus target price of $59.16, suggesting a potential upside of 28.89%. OneWater Marine has a consensus target price of $13.33, suggesting a potential upside of 38.03%. Given OneWater Marine’s stronger consensus rating and higher probable upside, analysts plainly believe OneWater Marine is more favorable than Floor & Decor.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Floor & Decor	$4.68 billion	1.04	$208.65 million	$2.15	21.35
OneWater Marine	$1.87 billion	0.09	-$114.58 million	($7.46)	-1.29

Floor & Decor has higher revenue and earnings than OneWater Marine. OneWater Marine is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Floor & Decor has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Summary

Floor & Decor beats OneWater Marine on 9 of the 13 factors compared between the two stocks.

About Floor & Decor

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.