Bassett Furniture Industries (NASDAQ: BSET) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
This table compares Bassett Furniture Industries and Sleep Number’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bassett Furniture Industries||4.09%||9.17%||6.15%|
This is a breakdown of recent ratings and price targets for Bassett Furniture Industries and Sleep Number, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bassett Furniture Industries||0||1||0||0||2.00|
Bassett Furniture Industries currently has a consensus target price of $39.00, indicating a potential upside of 2.36%. Sleep Number has a consensus target price of $33.40, indicating a potential downside of 10.22%. Given Bassett Furniture Industries’ higher possible upside, equities research analysts clearly believe Bassett Furniture Industries is more favorable than Sleep Number.
Insider and Institutional Ownership
71.7% of Bassett Furniture Industries shares are held by institutional investors. 6.4% of Bassett Furniture Industries shares are held by company insiders. Comparatively, 4.0% of Sleep Number shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Bassett Furniture Industries and Sleep Number’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bassett Furniture Industries||$432.04 million||0.95||$15.82 million||$1.71||22.28|
|Sleep Number||$1.31 billion||1.13||$51.41 million||$1.41||26.38|
Sleep Number has higher revenue and earnings than Bassett Furniture Industries. Bassett Furniture Industries is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.
Bassett Furniture Industries pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Sleep Number does not pay a dividend. Bassett Furniture Industries pays out 25.7% of its earnings in the form of a dividend.
Volatility & Risk
Bassett Furniture Industries has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Sleep Number beats Bassett Furniture Industries on 9 of the 16 factors compared between the two stocks.
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.
About Sleep Number
Sleep Number Corporation, formerly Select Comfort Corporation, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep. The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products. It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.
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