Financial Review: MillerKnoll (MLKN) and Its Competitors

MillerKnoll (NASDAQ:MLKN) is one of 17 public companies in the “FURNITURE” industry, but how does it weigh in compared to its rivals? We will compare MillerKnoll to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Volatility and Risk

MillerKnoll has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, MillerKnoll’s rivals have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Profitability

This table compares MillerKnoll and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MillerKnoll	0.84%	10.79%	3.56%
MillerKnoll Competitors	-4.26%	-18.05%	-2.74%

Insider and Institutional Ownership

87.5% of MillerKnoll shares are held by institutional investors. Comparatively, 62.4% of shares of all “FURNITURE” companies are held by institutional investors. 3.9% of MillerKnoll shares are held by insiders. Comparatively, 6.7% of shares of all “FURNITURE” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for MillerKnoll and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MillerKnoll	0	1	0	0	2.00
MillerKnoll Competitors	51	511	309	52	2.39

As a group, “FURNITURE” companies have a potential upside of 45.04%. Given MillerKnoll’s rivals stronger consensus rating and higher possible upside, analysts clearly believe MillerKnoll has less favorable growth aspects than its rivals.

Dividends

MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 4.4%. MillerKnoll pays out 178.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “FURNITURE” companies pay a dividend yield of 3.7% and pay out -105.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares MillerKnoll and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MillerKnoll	$3.63 billion	$82.30 million	40.16
MillerKnoll Competitors	$1.45 billion	-$1.07 million	5.10

MillerKnoll has higher revenue and earnings than its rivals. MillerKnoll is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

MillerKnoll beats its rivals on 9 of the 15 factors compared.

About MillerKnoll

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. It operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail. The company also provides seating products, furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. It offers its products under the MillerKnoll, Herman Miller, Herman Miller Circled Symbolic M, Knoll, Maharam, Geiger, Design Within Reach, DWR, HAY, NaughtOne, Nemschoff, Aeron, Mirra, Embody, Setu, Sayl, Cosm, Caper, Eames, Knoll, KnollExtra, Knoll Luxe, KnollStudio, KnollTextiles, Edelman Leather, Spinneybeck Leather, Generation by Knoll, Regeneration by Knoll, MultiGeneration by Knoll, Remix, Holly Hunt, Vladimir Kagan, Muuto, Barcelona, and Womb names. The company offers its products through independent contract furniture dealers, direct contract sales, e-commerce websites, and wholesale and retail stores. Its products are used in institutional, health/science, and residential and other environments, and industrial and educational settings, as well as transportation terminals. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.