Financial Analysis: Bassett Furniture Industries, (BSET) vs. Tempur Sealy International (TPX)
Bassett Furniture Industries, (NASDAQ: BSET) and Tempur Sealy International (NYSE:TPX) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
This is a breakdown of current ratings and target prices for Bassett Furniture Industries, and Tempur Sealy International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bassett Furniture Industries,||0||1||0||0||2.00|
|Tempur Sealy International||1||8||2||1||2.25|
Bassett Furniture Industries, presently has a consensus target price of $36.00, indicating a potential upside of 4.05%. Tempur Sealy International has a consensus target price of $65.00, indicating a potential upside of 7.85%. Given Tempur Sealy International’s stronger consensus rating and higher possible upside, analysts plainly believe Tempur Sealy International is more favorable than Bassett Furniture Industries,.
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%|
Earnings and Valuation
This table compares Bassett Furniture Industries, and Tempur Sealy International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bassett Furniture Industries,||$438.52 million||0.85||$42.16 million||$1.66||20.84|
|Tempur Sealy International||$2.98 billion||1.09||$445.50 million||$3.51||17.17|
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.
Bassett Furniture Industries, pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Tempur Sealy International does not pay a dividend. Bassett Furniture Industries, pays out 26.5% of its earnings in the form of a dividend.
Risk & Volatility
Bassett Furniture Industries, has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Tempur Sealy International has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.
Insider and Institutional Ownership
71.9% of Bassett Furniture Industries, shares are owned by institutional investors. 6.4% of Bassett Furniture Industries, shares are owned by company insiders. Comparatively, 2.1% of Tempur Sealy International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Tempur Sealy International beats Bassett Furniture Industries, on 13 of the 17 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 Tempur Sealy International
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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