Critical Review: Travis Perkins (OTCMKTS:TPRKY) versus Floor & Decor (NYSE:FND)

Floor & Decor (NYSE:FND) and Travis Perkins (OTCMKTS:TPRKY) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Floor & Decor and Travis Perkins, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Floor & Decor	3	12	5	0	2.10
Travis Perkins	0	0	0	0	0.00

Floor & Decor presently has a consensus target price of $104.37, suggesting a potential downside of 6.81%. Given Floor & Decor’s stronger consensus rating and higher probable upside, analysts clearly believe Floor & Decor is more favorable than Travis Perkins.

Volatility and Risk

Floor & Decor has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Travis Perkins has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Valuation & Earnings

This table compares Floor & Decor and Travis Perkins”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	$4.41 billion	2.72	$245.98 million	$1.80	62.22
Travis Perkins	$6.05 billion	0.42	$47.39 million	N/A	N/A

Floor & Decor has higher earnings, but lower revenue than Travis Perkins.

Profitability

This table compares Floor & Decor and Travis Perkins’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Floor & Decor	4.45%	9.69%	4.10%
Travis Perkins	N/A	N/A	N/A

Summary

Floor & Decor beats Travis Perkins on 9 of the 10 factors compared between the two stocks.

About Floor & Decor

Floor & Decor Holdings, Inc. together with its subsidiaries, operates as a multi-channel specialty retailer of hard surface flooring and related accessories, and commercial surfaces seller in Georgia. The company offers tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative accessories, wall tiles, and installation materials and tools; and vanities, shower doors, bath accessories, faucets, sinks, custom countertops, bathroom mirrors, and bathroom lighting. It also sells products through its Website, FloorandDecor.com. The company serves professional installers, commercial businesses, and homeowners. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.