ETD vs WSM

For growth investors, Williams-Sonoma, Inc.

(WSM) is the stronger pick with 1. 2% revenue growth year-over-year, versus -4. 9% for Ethan Allen Interiors Inc. (ETD). Ethan Allen Interiors Inc. (ETD) offers the better valuation at 10. 2x trailing P/E (14. 2x forward), making it the more compelling value choice. Analysts rate Ethan Allen Interiors Inc. (ETD) a "Hold" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Ethan Allen Interiors Inc.

(ETD) is the cheapest at 10. 2x versus Williams-Sonoma, Inc. at 21. 1x. On forward P/E, Ethan Allen Interiors Inc. is actually cheaper at 14. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ethan Allen Interiors Inc. wins at 0. 33x versus Williams-Sonoma, Inc. 's 1. 38x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Williams-Sonoma, Inc.

(WSM) delivered a total return of +114. 6%, compared to -2. 5% for Ethan Allen Interiors Inc. (ETD). Over 10 years, the gap is even starker: WSM returned +599. 0% versus ETD's +7. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ethan Allen Interiors Inc.

(ETD) is the lower-risk stock at 1. 11β versus Williams-Sonoma, Inc. 's 1. 49β — meaning WSM is approximately 34% more volatile than ETD relative to the S&P 500. On balance sheet safety, Ethan Allen Interiors Inc. (ETD) carries a lower debt/equity ratio of 26% versus 70% for Williams-Sonoma, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Williams-Sonoma, Inc.

(WSM) is pulling ahead at 1. 2% versus -4. 9% for Ethan Allen Interiors Inc. (ETD). On earnings-per-share growth, the picture is similar: Williams-Sonoma, Inc. grew EPS 0. 6% year-over-year, compared to -19. 3% for Ethan Allen Interiors Inc.. Over a 3-year CAGR, WSM leads at -3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Williams-Sonoma, Inc.

(WSM) is the more profitable company, earning 13. 9% net margin versus 8. 4% for Ethan Allen Interiors Inc. — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSM leads at 18. 1% versus 10. 1% for ETD. At the gross margin level — before operating expenses — ETD leads at 60. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Ethan Allen Interiors Inc. (ETD) is the more undervalued stock at a PEG of 0. 33x versus Williams-Sonoma, Inc. 's 1. 38x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Ethan Allen Interiors Inc. (ETD) trades at 14. 2x forward P/E versus 21. 4x for Williams-Sonoma, Inc. — 7. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ETD: 17. 1% to $24. 00.

All stocks in this comparison pay dividends.

Ethan Allen Interiors Inc. (ETD) offers the highest yield at 9. 5%, versus 1. 4% for Williams-Sonoma, Inc. (WSM).

For long-horizon retirement investors, Williams-Sonoma, Inc.

(WSM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 4% yield, +599. 0% 10Y return). Both have compounded well over 10 years (WSM: +599. 0%, ETD: +7. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ETD is a small-cap deep-value stock; WSM is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.