Financial Contrast: Flexsteel Industries (NASDAQ:FLXS) versus Dorel Industries (OTCMKTS:DIIBF)

Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and Flexsteel Industries (NASDAQ:FLXS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

Dorel Industries has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Flexsteel Industries has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dorel Industries and Flexsteel Industries, as reported by MarketBeat.com.

Flexsteel Industries has a consensus target price of $86.00, suggesting a potential upside of 16.78%. Given Flexsteel Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Flexsteel Industries is more favorable than Dorel Industries.

Valuation & Earnings

This table compares Dorel Industries and Flexsteel Industries”s revenue, earnings per share and valuation.

Flexsteel Industries has lower revenue, but higher earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Flexsteel Industries, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

36.3% of Flexsteel Industries shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by company insiders. Comparatively, 11.2% of Flexsteel Industries shares are owned 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.

Profitability

This table compares Dorel Industries and Flexsteel Industries’ net margins, return on equity and return on assets.

Summary

Flexsteel Industries beats Dorel Industries on 12 of the 15 factors compared between the two stocks.

About Dorel Industries

(Get Free Report)

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.

About Flexsteel Industries

(Get Free Report)

Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.