Critical Contrast: Dixie Group (DXYN) and NACCO Industries (NYSE:NC)

Dixie Group (NASDAQ: DXYN) and NACCO Industries (NYSE:NC) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Valuation & Earnings

This table compares Dixie Group and NACCO Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dixie Group $412.46 million 0.12 -$9.55 million ($0.07) -42.14
NACCO Industries $104.78 million 2.37 $30.33 million N/A N/A

NACCO Industries has lower revenue, but higher earnings than Dixie Group.

Volatility and Risk

Dixie Group has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

64.1% of Dixie Group shares are held by institutional investors. Comparatively, 47.0% of NACCO Industries shares are held by institutional investors. 16.0% of Dixie Group shares are held by company insiders. Comparatively, 30.6% of NACCO Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Dixie Group and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dixie Group -2.32% -1.35% -0.40%
NACCO Industries 7.62% 9.15% 4.00%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Dixie Group and NACCO Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dixie Group 0 0 0 0 N/A
NACCO Industries 0 0 0 0 N/A

Dividends

NACCO Industries pays an annual dividend of $1.88 per share and has a dividend yield of 5.2%. Dixie Group does not pay a dividend.

Summary

NACCO Industries beats Dixie Group on 9 of the 11 factors compared between the two stocks.

Dixie Group Company Profile

The Dixie Group, Inc. is engaged in marketing, manufacturing and selling of carpet and rugs. The Company offers its products to various residential and commercial customers through its various sales forces and brands. The Company operates through the carpet and rug manufacturing segment. The Company also provides carpet and yarn related services to other manufacturers. The Company’s brands include Fabrica, Masland Residential, Dixie Home, Atlas Carpet Mills, Masland Contract and Masland Hospitality. Dixie International sells its brands outside of the North American market. Fabrica markets and manufactures various residential carpet and custom rugs. Masland Contract markets and manufactures broadloom and modular carpet tile for the specified commercial marketplace. Masland Residential markets and manufactures design-driven specialty carpets and rugs for the residential marketplace. Dixie Home markets a range of tufted broadloom residential and commercial carpets.

NACCO Industries Company Profile

NACCO Industries, Inc. operates primarily in the mining industry. The company mines coal in North Dakota, Texas, Mississippi, Louisiana, and on the Navajo Nation in New Mexico for power generation. It provides value-added services, including maintaining and operating draglines for independently owned lime rock quarries; coal handling, processing, and drying services; and surface and mineral acquisition, and lease maintenance services. The company serves electric utilities, independent power providers, activated carbon producers, and synfuels plants. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

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