Smith Douglas Homes (NYSE:SDHC – Get Free Report) and La-Z-Boy (NYSE:LZB – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
Smith Douglas Homes has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Valuation & Earnings
This table compares Smith Douglas Homes and La-Z-Boy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith Douglas Homes | $971.12 million | 0.55 | $10.69 million | $0.72 | 14.53 |
| La-Z-Boy | $2.13 billion | 0.56 | $101.99 million | $1.97 | 15.22 |
La-Z-Boy has higher revenue and earnings than Smith Douglas Homes. Smith Douglas Homes 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.
Institutional & Insider Ownership
99.6% of La-Z-Boy shares are held by institutional investors. 84.2% of Smith Douglas Homes shares are held by company insiders. Comparatively, 3.1% of La-Z-Boy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Smith Douglas Homes and La-Z-Boy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Douglas Homes | 0.64% | -0.19% | -0.14% |
| La-Z-Boy | 3.86% | 11.79% | 6.12% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Smith Douglas Homes and La-Z-Boy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Douglas Homes | 1 | 7 | 1 | 0 | 2.00 |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
Smith Douglas Homes presently has a consensus target price of $11.38, indicating a potential upside of 8.75%. La-Z-Boy has a consensus target price of $39.50, indicating a potential upside of 31.78%. Given La-Z-Boy’s stronger consensus rating and higher possible upside, analysts clearly believe La-Z-Boy is more favorable than Smith Douglas Homes.
Summary
La-Z-Boy beats Smith Douglas Homes on 13 of the 14 factors compared between the two stocks.
About Smith Douglas Homes
Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.
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.
Receive News & Ratings for Smith Douglas Homes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Smith Douglas Homes and related companies with MarketBeat.com's FREE daily email newsletter.
