Leggett & Platt (NYSE:LEG – Get Free Report) and HomesToLife (NASDAQ:HTLM – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Institutional & Insider Ownership
64.2% of Leggett & Platt shares are owned by institutional investors. 2.1% of Leggett & Platt shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Leggett & Platt and HomesToLife’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leggett & Platt | 5.38% | 16.27% | 3.63% |
| HomesToLife | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leggett & Platt | 1 | 4 | 0 | 0 | 1.80 |
| HomesToLife | 1 | 0 | 0 | 0 | 1.00 |
Leggett & Platt presently has a consensus target price of $11.00, indicating a potential upside of 25.07%. Given Leggett & Platt’s stronger consensus rating and higher possible upside, analysts plainly believe Leggett & Platt is more favorable than HomesToLife.
Valuation and Earnings
This table compares Leggett & Platt and HomesToLife”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leggett & Platt | $4.17 billion | 0.29 | -$511.50 million | $1.61 | 5.46 |
| HomesToLife | $28.64 million | 1.68 | -$1.67 million | $0.01 | 327.00 |
HomesToLife has lower revenue, but higher earnings than Leggett & Platt. Leggett & Platt is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.
Summary
Leggett & Platt beats HomesToLife on 9 of the 12 factors compared between the two stocks.
About Leggett & Platt
Leggett & Platt, Inc. engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The Bedding Products segment supplies products and components for the home, including mattress springs and specialty foam, as well as adjustable beds, bedding machinery, steel rod, and drawn wire. The Specialized Products segment supplies titanium, nickel, and stainless-steel tubing for the aerospace industry, and serves the construction market with its hydraulic cylinders group. The Flooring, Furniture & Textile Products segment produces an extensive line of components and engineered systems for office, residential, and contract furniture manufacturers. The company was founded by J. P. Products and C. B. Platt in 1883 and is headquartered in Carthage, MO.
About HomesToLife
HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.
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