Reviewing Bassett Furniture Industries (NASDAQ:BSET) & NVR (NYSE:NVR)

NVR (NYSE:NVR) and Bassett Furniture Industries (NASDAQ:BSET) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

NVR has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

83.7% of NVR shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 8.6% of NVR shares are owned by insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for NVR and Bassett Furniture Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVR	0	4	3	0	2.43
Bassett Furniture Industries	0	1	0	2	3.33

NVR presently has a consensus price target of $7,224.20, indicating a potential upside of 12.87%. Given NVR’s higher possible upside, research analysts clearly believe NVR is more favorable than Bassett Furniture Industries.

Profitability

This table compares NVR and Bassett Furniture Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVR	12.26%	31.02%	19.89%
Bassett Furniture Industries	1.65%	3.56%	1.83%

Valuation & Earnings

This table compares NVR and Bassett Furniture Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVR	$10.09 billion	1.69	$1.34 billion	$385.59	16.60
Bassett Furniture Industries	$335.28 million	0.49	$6.10 million	$0.64	29.52

NVR has higher revenue and earnings than Bassett Furniture Industries. NVR 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.

Summary

NVR beats Bassett Furniture Industries on 12 of the 15 factors compared between the two stocks.

About NVR

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated, together with its subsidiaries, manufactures, markets, and retails home furnishings in the United States and internationally. It operates in three segments: Wholesale, Retail Company-Owned Stores, and Corporate and Other. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products, including dining, bedroom and bedding, home decorations, rugs, and outdoor furniture to a network of company-owned retail stores, licensee-owned stores, and independent retailers. The company also distributes its products through multi-line furniture stores, including Bassett galleries or design centers, as well as sells online; and engages in wood and upholstery operations. In addition, it owns and leases land, retail store properties, warehouses, and distribution centers. Bassett Furniture Industries, Incorporated was founded in 1902 and is based in Bassett, Virginia.