La-Z-Boy (NYSE: LZB) and Bassett Furniture Industries, (NASDAQ:BSET) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitabiliy, valuation and institutional ownership.
This table compares La-Z-Boy and Bassett Furniture Industries,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bassett Furniture Industries,||4.08%||9.05%||6.02%|
Volatility & Risk
La-Z-Boy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries, has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
Earnings & Valuation
This table compares La-Z-Boy and Bassett Furniture Industries,’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|La-Z-Boy||$1.52 billion||1.04||$159.71 million||$1.74||18.74|
|Bassett Furniture Industries,||$438.52 million||0.89||$42.16 million||$1.66||22.02|
La-Z-Boy has higher revenue and earnings than Bassett Furniture Industries,. La-Z-Boy is trading at a lower price-to-earnings ratio than Bassett Furniture Industries,, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.8% of La-Z-Boy shares are owned by institutional investors. Comparatively, 71.2% of Bassett Furniture Industries, shares are owned by institutional investors. 3.2% of La-Z-Boy shares are owned by insiders. Comparatively, 6.4% of Bassett Furniture Industries, shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for La-Z-Boy and Bassett Furniture Industries,, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bassett Furniture Industries,||0||1||0||0||2.00|
La-Z-Boy currently has a consensus price target of $31.33, suggesting a potential downside of 3.89%. Bassett Furniture Industries, has a consensus price target of $36.00, suggesting a potential downside of 1.50%. Given Bassett Furniture Industries,’s higher possible upside, analysts clearly believe Bassett Furniture Industries, is more favorable than La-Z-Boy.
La-Z-Boy pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Bassett Furniture Industries, pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. La-Z-Boy pays out 25.3% of its earnings in the form of a dividend. Bassett Furniture Industries, pays out 24.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
La-Z-Boy beats Bassett Furniture Industries, on 11 of the 16 factors compared between the two stocks.
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company also imports, distributes and retails accessories and casegoods (wood) furniture products. The Company’s segments include the Upholstery segment, the Casegoods segment and the Retail segment. The Company is the producer of reclining chairs and manufacturer/distributor of residential furniture in the United States. The Company sells its products, primarily in the United States and Canada, as well as internationally, to furniture retailers and directly to consumers through stores that it owns and operates. The Company has a network of approximately 340 La-Z-Boy Furniture Galleries stores and over 560 Comfort Studio locations. The Company owns approximately 120 of the La-Z-Boy Furniture Galleries stores. The Company’s other brands include England, Kincaid, American Drew and Hammary.
About Bassett Furniture Industries,
Bassett Furniture Industries, Incorporated is a manufacturer, importer and retailer of home furnishings. The Company’s segments include Wholesale, Retail – Company-owned stores and Logistical services. Its wholesale home furnishings segment is involved in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (licensee-owned stores and Company-owned stores) and independent furniture retailers. Its retail segment consists of Company-owned stores. It operates its logistical services segment through its subsidiary, Zenith Freight Lines, LLC, which provides shipping, delivery and warehousing services. Its portfolio of products includes Canopy Bed, Nightstands, Baby Bedding, Bedside Tables, Chaise Lounge, Writing Desks, Kitchen Furniture, Computer Hutch, Game Tables and Fabric Ottomans. Its range of furniture products and accessories are sold through a nation-wide network of over 90 retail stores known as Bassett Home Furnishings.
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