Reviewing Mohawk Industries (MHK) and Its Rivals

Mohawk Industries (NYSE:MHK) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it contrast to its competitors? We will compare Mohawk Industries to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Volatility and Risk

Mohawk Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Mohawk Industries’ competitors have a beta of 1.73, suggesting that their average share price is 73% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mohawk Industries and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mohawk Industries	$10.79 billion	$369.90 million	18.18
Mohawk Industries Competitors	$5.27 billion	$319.19 million	25.89

Mohawk Industries has higher revenue and earnings than its competitors. Mohawk Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by company insiders. Comparatively, 18.6% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Mohawk Industries and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mohawk Industries	0	12	3	1	2.31
Mohawk Industries Competitors	1708	7236	8013	292	2.40

Mohawk Industries presently has a consensus target price of $130.50, indicating a potential downside of 4.95%. As a group, “Household Durables” companies have a potential upside of 44.59%. Given Mohawk Industries’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Mohawk Industries has less favorable growth aspects than its competitors.

Profitability

This table compares Mohawk Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mohawk Industries	4.15%	7.50%	4.60%
Mohawk Industries Competitors	-21.29%	-14.81%	1.04%

Summary

Mohawk Industries beats its competitors on 7 of the 13 factors compared.

About Mohawk Industries

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.