MHK vs TILE: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
MHK and TILE are similarly sized, but MHK trades noticeably cheaper on forward earnings (12.40x vs 16.22x): the market is paying up for TILE's profile and pricing MHK more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
MHK vs TILE: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MHK | TILE | What it tells you |
|---|---|---|---|
| Forward P/E | 12.40 | 16.22 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 16.30 | 15.96 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.18 | 1.91 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 60% of range | 93% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 0.90 | 3.36 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: MHK is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MHK and TILE affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MHK and TILE share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MHK and TILE exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Mohawk Industries (MHK) do?
Mohawk Industries (NYSE: MHK) designs, manufactures, and distributes flooring products including ceramic tile, carpet, luxury vinyl, laminate, and wood across residential and commercial channels in the United States, Europe, and Latin America. Its business is organized into three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World, and it markets under brands such as Mohawk, Pergo, Karastan, Marazzi, Daltile, and Quick-Step.
What does Interface, Inc. (TILE) do?
Interface, Inc. designs and manufactures floor coverings for commercial interiors. The core franchise is modular carpet tile, the category the company effectively created, sold alongside luxury vinyl tile and the nora rubber flooring line acquired in 2018. Customers are architects, designers, general contractors and facility owners fitting out offices, schools, hospitals, airports and public buildings, so revenue follows non-residential construction and renovation cycles rather than consumer spending. Reporting splits into two segments: Americas, at roughly $248 million of second-quarter sales, and EAAA, covering Europe, Asia, Africa and Australia, at roughly $148 million. Manufacturing sits in the United States, Europe and Asia, with about 3,570 employees. Sustainability is not a side project here: the company markets carbon-neutral and now carbon-negative product lines, including 36 carbon-negative carpet tile styles and a carbon-negative rubber prototype, and that positioning wins specification slots with clients carrying their own emissions targets.
MHK vs TILE: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MHK drivers: Housing and remodeling recovery leverage; Productivity, restructuring, and cost control.
- TILE drivers: End-market diversification away from corporate office; Margin structure rebuilt through pricing and factory efficiency.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Mohawk is highly cyclical, so a prolonged period of elevated interest rates and weak housing turnover keeps volumes and pricing under pressure. For TILE, non-residential construction is the whole cycle here, and a downturn in office, education or healthcare project starts hits orders before it hits reported revenue.
MHK or TILE: which should you pick?
MHK vs TILE: the full fundamentals
MHK. Mohawk trades at a below-market trailing P/E of roughly 15x and a forward P/E near 12x, reflecting depressed cyclical earnings rather than an expensive valuation. Revenue has been roughly flat near $11 billion as soft volumes offset restructuring benefits. The multiple sits above trough-cycle levels because investors are partly pricing in an eventual margin and volume recovery.
TILE. At roughly $38 a share, Interface trades near 15 times trailing earnings and close to 9 times LTM adjusted EBITDA once net debt is added, a mid-single-digit discount to where diversified flooring peers have changed hands. The trailing multiple looks cheaper than the business really is, because the tariff refund inflated the last reported quarter. Full-year guidance of ~$1.455 billion to ~$1.485 billion in sales with a ~40.6% adjusted gross margin, plus third-quarter sales guided to ~$370 million to ~$380 million, is the base a valuation should work from.
Headline figures (approximate, JULY 2026): MHK shows revenue (ttm) ~$11.0B, fy2025 revenue ~$10.8B, q1 2026 net sales ~$2.7B, q1 2026 eps ~$1.90; TILE shows revenue (ttm) ~$1.45B, q2 2026 net sales ~$395.7M, up ~5.4% (~3.8% currency-neutral), q2 2026 adjusted eps ~$0.88, versus ~$0.60 a year earlier, adjusted ebitda (ltm) ~$250.5M.
The bottom line: MHK vs TILE
MHK and TILE are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MHK and TILE exposure against your real portfolio. It is not an investment adviser.
Wondering how MHK or TILE fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Mohawk Industries with AI
Connect the broker you already use and ask Walnut's AI how MHK fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MHK and TILE?
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Mohawk Industries (NYSE: MHK) designs, manufactures, and distributes flooring products including ceramic tile, carpet, luxury vinyl, laminate, and wood across residential and commercial channels in the United States, Europe, and Latin America. Interface, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MHK or TILE the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MHK or TILE?
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On forward P/E (as of August 2026), MHK trades at 12.40x and TILE at 16.22x, so MHK is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MHK and TILE?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MHK vs TILE?
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MHK: Mohawk is highly cyclical, so a prolonged period of elevated interest rates and weak housing turnover keeps volumes and pricing under pressure. Input costs for energy, resins, and raw materials, along with foreign-exchange swings from its large European and Latin American operations, can compress margins. Tariffs and trade policy add uncertainty to sourcing and pricing. Competition from other large manufacturers and lower-cost imports limits pricing power, and management itself flagged significant macroeconomic uncertainty in its 2026 guidance. Any recovery may prove slower and choppier than the market expects. TILE: Non-residential construction is the whole cycle here, and a downturn in office, education or healthcare project starts hits orders before it hits reported revenue. The ~$15.6 million IEEPA tariff refund flattered second-quarter margins by roughly 190 basis points of gross margin and ~$0.19 of EPS, so year-over-year comparisons in 2027 start from an inflated base; tariff policy itself remains a live input-cost variable given manufacturing and sourcing across three continents. Corporate office demand has not returned to pre-2020 square footage, and Interface competes for that shrinking pool against much larger rivals in Mohawk, Shaw and Tarkett who can absorb price competition. EAAA results carry currency translation risk, visible in the gap between ~8.8% reported and ~4.5% currency-neutral growth last quarter. Finally, the company carries a history of accounting problems, having settled an SEC action in 2020 over unsupported manual expense adjustments made in 2015 and 2016, and the related shareholder litigation is long resolved but the episode is part of the record.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MHK or TILE; figures are approximate and dated (as of August 2026). Verify current data before investing.