Pier 1 Imports (NYSE: PIR) and Haverty Furniture Companies (NYSE:HVT) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk & Volatility
Pier 1 Imports has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Haverty Furniture Companies has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Pier 1 Imports pays an annual dividend of $0.28 per share and has a dividend yield of 6.4%. Haverty Furniture Companies pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Pier 1 Imports pays out 68.3% of its earnings in the form of a dividend. Haverty Furniture Companies pays out 33.8% 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. Haverty Furniture Companies has increased its dividend for 4 consecutive years.
Insider & Institutional Ownership
86.0% of Pier 1 Imports shares are held by institutional investors. Comparatively, 78.8% of Haverty Furniture Companies shares are held by institutional investors. 5.6% of Pier 1 Imports shares are held by insiders. Comparatively, 10.3% of Haverty Furniture Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Pier 1 Imports and Haverty Furniture Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pier 1 Imports||1.82%||13.96%||4.53%|
|Haverty Furniture Companies||3.67%||10.58%||6.65%|
This is a breakdown of current ratings and target prices for Pier 1 Imports and Haverty Furniture Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pier 1 Imports||4||11||2||0||1.88|
|Haverty Furniture Companies||0||2||0||0||2.00|
Pier 1 Imports currently has a consensus price target of $5.90, indicating a potential upside of 34.40%. Given Pier 1 Imports’ higher possible upside, equities research analysts plainly believe Pier 1 Imports is more favorable than Haverty Furniture Companies.
Earnings & Valuation
This table compares Pier 1 Imports and Haverty Furniture Companies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pier 1 Imports||$1.82 billion||0.20||$134.14 million||$0.41||10.71|
|Haverty Furniture Companies||$829.74 million||0.57||$78.21 million||$1.42||17.11|
Pier 1 Imports has higher revenue and earnings than Haverty Furniture Companies. Pier 1 Imports is trading at a lower price-to-earnings ratio than Haverty Furniture Companies, indicating that it is currently the more affordable of the two stocks.
Haverty Furniture Companies beats Pier 1 Imports on 9 of the 17 factors compared between the two stocks.
About Pier 1 Imports
Pier 1 Imports, Inc. is an importer of home decor and furniture. The Company’s operations consist of retail stores and an e-commerce Website conducting business under the name Pier 1 Imports, which sells a range of decorative accessories, furniture, candles, housewares, gifts and seasonal products. The Company’s categories of merchandise include decorative accessories and furniture. The decorative accessories category includes decorative accents and textiles, such as rugs, wall decorations and mirrors, candles, fragrance, gifts and seasonal items. The furniture category includes furniture and furniture cushions to be used in living, dining, office, sunrooms and patios. This merchandise group is generally made of metal or handcrafted natural materials, including rattan, pine, acacia, oak and other woods with either natural, stained, painted or upholstered finishes.
About Haverty Furniture Companies
Haverty Furniture Companies, Inc. is a retailer of residential furniture and accessories. The Company sells home furnishings in its retail stores and through its Website, havertys.com. As of December 31, 2016, the Company had 124 stores in 16 states in the Southern and Midwest regions. As of December 31, 2016, the Company’s retail store space totaled approximately 4.5 million square feet for 124 stores. It also offers financing through a third-party finance company, as well as an internal revolving charge credit plan. The Company’s retail locations are operated using the Havertys name. It offers mattress product lines, such as Sealy, Tempur-Pedic, Serta, Stearns & Foster and Beautyrest Black. The Company’s customers are college educated women in middle to upper-middle income households. The Company stores are located in areas, including Florida, Texas, North Carolina, Tennessee and Maryland.
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