Bassett Furniture Industries, (NASDAQ: BSET) and Tempur Sealy International (NYSE:TPX) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Bassett Furniture Industries, and Tempur Sealy International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bassett Furniture Industries, 0 1 0 0 2.00
Tempur Sealy International 1 10 0 1 2.08

Bassett Furniture Industries, currently has a consensus target price of $36.00, indicating a potential downside of 1.50%. Tempur Sealy International has a consensus target price of $60.13, indicating a potential downside of 0.54%. Given Tempur Sealy International’s stronger consensus rating and higher probable upside, analysts plainly believe Tempur Sealy International is more favorable than Bassett Furniture Industries,.

Institutional and Insider Ownership

71.2% of Bassett Furniture Industries, shares are held by institutional investors. 6.4% of Bassett Furniture Industries, shares are held by company insiders. Comparatively, 2.1% of Tempur Sealy International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Bassett Furniture Industries, and Tempur Sealy International’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%
Tempur Sealy International 6.69% 617.75% 8.15%

Volatility & Risk

Bassett Furniture Industries, has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Tempur Sealy International has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bassett Furniture Industries, and Tempur Sealy International’s gross 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 0.89 $42.16 million $1.66 22.02
Tempur Sealy International $2.98 billion 1.09 $434.00 million $3.51 17.22

Tempur Sealy International has higher revenue and earnings than Bassett Furniture Industries,. Tempur Sealy International 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.

Dividends

Bassett Furniture Industries, pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Tempur Sealy International does not pay a dividend. Bassett Furniture Industries, pays out 24.1% of its earnings in the form of a dividend.

Summary

Tempur Sealy International 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.

Tempur Sealy International Company Profile

Tempur Sealy International, Inc. is a bedding manufacturer. The Company develops, manufactures, markets and distributes bedding products. The Company operates in two segments: North America and International. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the United States and Canada. Its International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. Its brand portfolio includes TEMPUR, Tempur-Pedic, Sealy, Sealy Posturepedic, and Stearns & Foster. It offers its products in over two categories, including Bedding, which includes mattresses, foundations and adjustable foundations, and Other, which includes pillows, mattress covers, sheets, cushions and various other comfort products. As of December 31, 2016, it sold its products across the globe in approximately 100 countries.

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