Bassett Furniture Industries, (NASDAQ: BSET) and La-Z-Boy (NYSE:LZB) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Institutional and Insider Ownership
73.5% of Bassett Furniture Industries, shares are held by institutional investors. Comparatively, 85.0% of La-Z-Boy shares are held by institutional investors. 6.4% of Bassett Furniture Industries, shares are held by company insiders. Comparatively, 3.2% of La-Z-Boy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Bassett Furniture Industries, pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. La-Z-Boy pays an annual dividend of $0.44 per share and has a dividend yield of 1.4%. Bassett Furniture Industries, pays out 26.5% of its earnings in the form of a dividend. La-Z-Boy pays out 25.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Bassett Furniture Industries, and La-Z-Boy’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% |
| La-Z-Boy | 6.84% | 19.17% | 12.91% |
Valuation & Earnings
This table compares Bassett Furniture Industries, and La-Z-Boy’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Bassett Furniture Industries, | $438.52 million | 0.88 | $42.16 million | $1.66 | 21.57 |
| La-Z-Boy | $1.52 billion | 1.02 | $159.71 million | $1.74 | 18.33 |
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.
Risk and Volatility
Bassett Furniture Industries, has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Bassett Furniture Industries, and La-Z-Boy, as reported 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 | 0 | 3 | 1 | 0 | 2.25 |
Bassett Furniture Industries, currently has a consensus price target of $36.00, suggesting a potential upside of 0.56%. La-Z-Boy has a consensus price target of $31.33, suggesting a potential downside of 1.78%. Given Bassett Furniture Industries,’s higher probable upside, analysts clearly believe Bassett Furniture Industries, is more favorable than La-Z-Boy.
Summary
La-Z-Boy beats Bassett Furniture Industries, on 12 of the 16 factors compared between the two stocks.
Bassett Furniture Industries, Company Profile
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.
La-Z-Boy Company Profile
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.
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