Critical Analysis: Stanley Furniture (STLY) vs. La-Z-Boy (LZB)
Stanley Furniture (NASDAQ: STLY) and La-Z-Boy (NYSE:LZB) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This is a summary of current ratings and recommmendations for Stanley Furniture and La-Z-Boy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
La-Z-Boy has a consensus target price of $30.33, suggesting a potential upside of 12.76%. Given La-Z-Boy’s higher probable upside, analysts plainly believe La-Z-Boy is more favorable than Stanley Furniture.
Volatility and Risk
Stanley Furniture has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Insider & Institutional Ownership
29.7% of Stanley Furniture shares are owned by institutional investors. Comparatively, 86.8% of La-Z-Boy shares are owned by institutional investors. 28.6% of Stanley Furniture shares are owned by insiders. Comparatively, 3.2% of La-Z-Boy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Stanley Furniture and La-Z-Boy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Stanley Furniture and La-Z-Boy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stanley Furniture||$43.64 million||0.41||-$3.31 million||($0.20)||-5.90|
|La-Z-Boy||$1.54 billion||0.84||$154.51 million||$1.70||15.82|
La-Z-Boy has higher revenue and earnings than Stanley Furniture. Stanley Furniture is trading at a lower price-to-earnings ratio than La-Z-Boy, indicating that it is currently the more affordable of the two stocks.
La-Z-Boy pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Stanley Furniture does not pay a dividend. La-Z-Boy pays out 25.9% of its earnings in the form of a dividend.
La-Z-Boy beats Stanley Furniture on 12 of the 14 factors compared between the two stocks.
About Stanley Furniture
Stanley Furniture Company, Inc. is a design, marketing and sourcing resource in the wood residential furniture market. The Company’s segment is sale of residential wood furniture products. The Company markets its brands through a network of brick-and-mortar furniture retailers, online retailers and interior designers around the world. The Company’s products are marketed under the Stanley Furniture brand, but also under sub-brands, including Coastal Living and Stone & Leigh. The Company’s products are marketed as wood residential home furnishings and include a range of offerings for the home, including dining, bedroom, living room, home office, home entertainment, accent items, and nursery and youth furniture. The Company provides products in a range of wood species and finishes. The Company’s product is sourced from independently owned factories in Southeast Asia, primarily in Vietnam.
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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