Flexsteel Industries (NASDAQ:FLXS) and Luvu Brands (OTCMKTS:LUVU) 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 dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

63.8% of Flexsteel Industries shares are held by institutional investors. 6.1% of Flexsteel Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Flexsteel Industries and Luvu Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flexsteel Industries 0 0 0 0 N/A
Luvu Brands 0 0 0 0 N/A

Profitability

This table compares Flexsteel Industries and Luvu Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flexsteel Industries 3.19% 5.86% 4.96%
Luvu Brands 0.89% -6.76% 4.09%

Earnings and Valuation

This table compares Flexsteel Industries and Luvu Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flexsteel Industries $489.18 million 0.40 $17.66 million N/A N/A
Luvu Brands $16.43 million 0.13 $140,000.00 N/A N/A

Flexsteel Industries has higher revenue and earnings than Luvu Brands.

Risk & Volatility

Flexsteel Industries has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Luvu Brands has a beta of -2.55, suggesting that its stock price is 355% less volatile than the S&P 500.

Dividends

Flexsteel Industries pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. Luvu Brands does not pay a dividend. Flexsteel Industries has raised its dividend for 8 consecutive years.

Summary

Flexsteel Industries beats Luvu Brands on 11 of the 11 factors compared between the two stocks.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, manufactures, imports, and markets residential and contract upholstered and wood furniture products in the United States. It offers its products for use in home, hotel, healthcare, recreational vehicle, marine, and office applications. The company distributes its products through its sales force and independent representatives. Flexsteel Industries, Inc. was founded in 1929 and is headquartered in Dubuque, Iowa.

About Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various wellness, lifestyle, and casual furniture products worldwide. The company provides sexual positioning furniture products under the brand name of Liberator; top-of-bed comfort pillows under the Avana brand name; and casual fashion furniture, child beanbags, teen and adult beanbags, outdoor loungers, loveseats, and daybeds under the brand name of Jaxx. It is also involved in the purchase and sale of products to retailers and mass merchants. The company markets its products directly through various Websites that include liberator.com, liberatorshop.com, theliberator.co.uk, jaxxliving.com, and avanacomfort.com, as well as through concept factory store, online mass merchants, and retail stores. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

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