Financial Comparison: Floor & Decor (NYSE:FND) & ATRenew (NYSE:RERE)

ATRenew (NYSE:RERE) and Floor & Decor (NYSE:FND) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Earnings and Valuation

This table compares ATRenew and Floor & Decor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATRenew	$3.01 billion	0.29	$48.09 million	$0.29	13.50
Floor & Decor	$4.68 billion	1.02	$208.65 million	$2.15	20.79

Floor & Decor has higher revenue and earnings than ATRenew. ATRenew is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ATRenew has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ATRenew and Floor & Decor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATRenew	0	1	2	0	2.67
Floor & Decor	3	12	5	0	2.10

ATRenew presently has a consensus target price of $5.50, indicating a potential upside of 40.49%. Floor & Decor has a consensus target price of $58.74, indicating a potential upside of 31.43%. Given ATRenew’s stronger consensus rating and higher probable upside, equities analysts plainly believe ATRenew is more favorable than Floor & Decor.

Institutional and Insider Ownership

19.3% of ATRenew shares are owned by institutional investors. 10.7% of ATRenew shares are owned by company insiders. Comparatively, 1.8% of Floor & Decor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ATRenew	2.01%	12.32%	8.30%
Floor & Decor	4.93%	8.20%	3.58%

Summary

Floor & Decor beats ATRenew on 8 of the 14 factors compared between the two stocks.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.

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.