Contrasting At Home (NYSE:HOME) & The Tile Shop (TTS)

At Home (NYSE: HOME) and The Tile Shop (NASDAQ:TTS) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Analyst Ratings

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This is a breakdown of current ratings and price targets for At Home and The Tile Shop, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
At Home 0 2 7 0 2.78
The Tile Shop 1 6 0 0 1.86

At Home currently has a consensus target price of $31.39, indicating a potential downside of 11.16%. The Tile Shop has a consensus target price of $7.16, indicating a potential upside of 17.91%. Given The Tile Shop’s higher possible upside, analysts clearly believe The Tile Shop is more favorable than At Home.

Profitability

This table compares At Home and The Tile Shop’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
At Home 3.35% 9.25% 3.92%
The Tile Shop 3.14% 11.11% 6.23%

Institutional and Insider Ownership

32.8% of At Home shares are owned by institutional investors. Comparatively, 64.8% of The Tile Shop shares are owned by institutional investors. 7.1% of At Home shares are owned by company insiders. Comparatively, 24.3% of The Tile Shop 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.

Dividends

The Tile Shop pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. At Home does not pay a dividend. The Tile Shop pays out 62.5% of its earnings in the form of a dividend.

Risk and Volatility

At Home has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, The Tile Shop has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Earnings & Valuation

This table compares At Home and The Tile Shop’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
At Home $950.53 million 2.25 $31.81 million $0.76 46.49
The Tile Shop $344.60 million 0.92 $10.81 million $0.32 18.97

At Home has higher revenue and earnings than The Tile Shop. The Tile Shop is trading at a lower price-to-earnings ratio than At Home, indicating that it is currently the more affordable of the two stocks.

Summary

At Home beats The Tile Shop on 10 of the 16 factors compared between the two stocks.

About At Home

At Home Group Inc. operates home decor superstores in the United States. The company's stores offer approximately 50,000 items, such as accent furniture, frames, pottery, bar stools, garden décor, rugs and mats, bedding and bath products, Halloween decorations, sculptures, beds and mattresses, harvest decorations, silk flowers, candles, home organization products, sofas, chairs, kitchenware, stands, Christmas decorations, lamps, storage products, consumables, mirrors, tables, Easter decorations, patio products, vases, floor plants and trees, pet items, wall arts, food preparation items, pillows and cushions, and window treatments. As of January 31, 2018, it operated 150 stores in 34 states. The company was founded in 1979 and is headquartered in Plano, Texas.

About The Tile Shop

Tile Shop Holdings, Inc. operates as a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States. It offers approximately 4,000 products, including marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and ceramic, porcelain, glass, cement, wood look, and metal tiles primarily under the Rush River and Fired Earth brands. The company also manufactures setting and maintenance materials, such as thinset, grout, sealers, and accessories, including installation tools, shower and bath shelves, drains, and similar products under the Superior brand name. As of March 1, 2018, it operated 140 stores in 31 states and the District of Columbia with an average size of 20,300 square feet. The company also sells its products through its Website, tileshop.com. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.

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