Mohawk Industries Inc. (MHK) and Nova LifeStyle Inc. (NASDAQ:NVFY) Contrasting side by side

Mohawk Industries Inc. (NYSE:MHK) and Nova LifeStyle Inc. (NASDAQ:NVFY) are two firms in the Home Furnishings & Fixtures that compete against each other. Below is a comparison of their dividends, institutional ownership, analyst recommendations, profitability, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mohawk Industries Inc. 9.98B 0.93 857.81M 11.53 11.99
Nova LifeStyle Inc. 98.84M 0.25 3.99M 0.26 3.04

Table 1 demonstrates Mohawk Industries Inc. and Nova LifeStyle Inc.’s top-line revenue, earnings per share (EPS) and valuation. Nova LifeStyle Inc. is observed to has lower revenue and earnings than Mohawk Industries Inc. When business has higher price-to-earnings means it is more expensive than its counterpart presently. Mohawk Industries Inc.’s shares have been trading at higher price-to-earnings ratio which means it is presently more expensive than Nova LifeStyle Inc.

Profitability

Table 2 provides us the return on equity, net margins and return on assets of both businesses.

Net Margins Return on Equity Return on Assets
Mohawk Industries Inc. 8.60% 12.5% 7.2%
Nova LifeStyle Inc. 4.04% 5.6% 4.8%

Volatility & Risk

A 1.53 beta indicates that Mohawk Industries Inc. is 53.00% more volatile compared to Standard & Poor’s 500. Nova LifeStyle Inc. on the other hand, has 2.84 beta which makes it 184.00% more volatile compared to Standard & Poor’s 500.

Liquidity

The current Quick Ratio of Mohawk Industries Inc. is 0.8 while its Current Ratio is 1.5. Meanwhile, Nova LifeStyle Inc. has a Current Ratio of 8.6 while its Quick Ratio is 7.9. Nova LifeStyle Inc. is better positioned to pay off its short-term and long-term debts than Mohawk Industries Inc.

Analyst Recommendations

In next table is given Mohawk Industries Inc. and Nova LifeStyle Inc.’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Mohawk Industries Inc. 4 2 4 2.40
Nova LifeStyle Inc. 0 0 0 0.00

Mohawk Industries Inc.’s upside potential is 10.19% at a $141.67 average price target.

Insider and Institutional Ownership

The shares of both Mohawk Industries Inc. and Nova LifeStyle Inc. are owned by institutional investors at 80.4% and 4.5% respectively. 0.8% are Mohawk Industries Inc.’s share owned by insiders. Competitively, insiders own roughly 0.3% of Nova LifeStyle Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Mohawk Industries Inc. -2.24% 7.33% 5.61% -29.47% -42.67% 18.19%
Nova LifeStyle Inc. -5.11% 14.49% -19.94% -55.74% -63.93% 71.66%

For the past year Mohawk Industries Inc.’s stock price has smaller growth than Nova LifeStyle Inc.

Summary

Mohawk Industries Inc. beats Nova LifeStyle Inc. on 13 of the 14 factors.

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW). The Global Ceramic segment provides a range of ceramic tile, porcelain tile, and natural stone products; and sources, markets, and distributes other tile related products. This segment markets and distributes its products under the American Olean, Daltile, KAI, Kerama Marazzi, Marazzi, and Ragno brands. The Flooring NA segment offers product lines in a range of colors, textures, and patterns, including carpets, rugs, and carpet pads; hardwood and laminate products; and luxury vinyl tiles and sheet vinyl products. This segment markets and distributes its flooring products under the Aladdin, Columbia Flooring, Durkan, Horizon, IVC, Karastan, Mohawk, Pergo, Portico, QuickStep, and SmartStrand brands. The Flooring ROW segment provides laminate and hardwood flooring, as well as roofing elements, insulation boards, medium-density fiberboards, chipboards, and vinyl flooring products under the IVC, Moduleo, Pergo, Quick-Step, and Unilin brands; and licenses patents related to flooring manufacturers. The company sells its products through independent distributors, home centers, floor covering retailers, ceramic specialists, commercial contractors, commercial end users, mass merchandisers, department stores, shop at home, buying groups, retailers, and wholesalers, as well as private labeling programs. Mohawk Industries, Inc. was founded in 1988 and is headquartered in Calhoun, Georgia.

Nova LifeStyle, Inc. and its subsidiaries, designs, manufactures, markets, and sells residential furniture for middle and upper middle-income consumers worldwide. The company develops upholstered, wood, and metal-based residential furniture for the living rooms, dining rooms, bedrooms, and home offices. It also offers sofas, chairs, dining tables, beds, entertainment consoles, cabinets, and cupboards. The company offers its products under the Diamond Sofa, Colorful World, Giorgio Mobili, and Bright Swallow brands. It sells its products through Internet sales and direct sales primarily to furniture distributors and retailers. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.