Contrasting Floor & Decor (NYSE:FND) and Monro Muffler Brake (NASDAQ:MNRO)
by Sarita Garza · The Markets DailyMonro Muffler Brake (NASDAQ:MNRO – Get Free Report) and Floor & Decor (NYSE:FND – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Monro Muffler Brake and Floor & Decor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monro Muffler Brake | 0.71% | 0.80% | 0.30% |
| Floor & Decor | 4.93% | 8.20% | 3.58% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Monro Muffler Brake and Floor & Decor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monro Muffler Brake | 1 | 2 | 2 | 0 | 2.20 |
| Floor & Decor | 3 | 12 | 5 | 0 | 2.10 |
Monro Muffler Brake presently has a consensus target price of $24.33, indicating a potential upside of 101.10%. Floor & Decor has a consensus target price of $59.42, indicating a potential upside of 25.74%. Given Monro Muffler Brake’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Monro Muffler Brake is more favorable than Floor & Decor.
Volatility and Risk
Monro Muffler Brake has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
Valuation and Earnings
This table compares Monro Muffler Brake and Floor & Decor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monro Muffler Brake | $1.16 billion | 0.33 | $2.17 million | $0.22 | 55.00 |
| Floor & Decor | $4.68 billion | 1.07 | $208.65 million | $2.15 | 21.98 |
Floor & Decor has higher revenue and earnings than Monro Muffler Brake. Floor & Decor is trading at a lower price-to-earnings ratio than Monro Muffler Brake, indicating that it is currently the more affordable of the two stocks.
Summary
Floor & Decor beats Monro Muffler Brake on 9 of the 12 factors compared between the two stocks.
About Monro Muffler Brake
Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.
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.