La-Z-Boy (NYSE:LZB – Get Free Report) and MasterBrand (NYSE:MBC – Get Free Report) 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 valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Risk and Volatility
La-Z-Boy has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Valuation & Earnings
This table compares La-Z-Boy and MasterBrand”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La-Z-Boy | $2.11 billion | 0.63 | $99.56 million | $2.19 | 14.69 |
| MasterBrand | $2.70 billion | 0.60 | $125.90 million | $0.72 | 17.73 |
MasterBrand has higher revenue and earnings than La-Z-Boy. La-Z-Boy is trading at a lower price-to-earnings ratio than MasterBrand, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares La-Z-Boy and MasterBrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La-Z-Boy | 4.35% | 11.34% | 6.03% |
| MasterBrand | 3.37% | 11.88% | 5.28% |
Insider and Institutional Ownership
99.6% of La-Z-Boy shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 2.7% of La-Z-Boy shares are owned by company insiders. Comparatively, 2.0% of MasterBrand shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for La-Z-Boy and MasterBrand, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La-Z-Boy | 1 | 1 | 1 | 0 | 2.00 |
| MasterBrand | 1 | 1 | 1 | 0 | 2.00 |
La-Z-Boy currently has a consensus price target of $46.00, indicating a potential upside of 42.95%. MasterBrand has a consensus price target of $15.00, indicating a potential upside of 17.51%. Given La-Z-Boy’s higher probable upside, analysts clearly believe La-Z-Boy is more favorable than MasterBrand.
Summary
La-Z-Boy beats MasterBrand on 7 of the 12 factors compared between the two stocks.
About La-Z-Boy
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
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