Flexsteel Industries (NASDAQ:FLXS) vs. Haier Electronics Group (OTCMKTS:HRELY) Head-To-Head Comparison

Haier Electronics Group (OTCMKTS:HRELY) and Flexsteel Industries (NASDAQ:FLXS) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Institutional and Insider Ownership

36.3% of Flexsteel Industries shares are held by institutional investors. 11.2% of Flexsteel Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Haier Electronics Group pays an annual dividend of $0.58 per share and has a dividend yield of 1.3%. Flexsteel Industries pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Haier Electronics Group pays out 27.5% of its earnings in the form of a dividend. Flexsteel Industries pays out 18.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Flexsteel Industries has increased its dividend for 1 consecutive years. Flexsteel Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Haier Electronics Group and Flexsteel Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haier Electronics Group	N/A	N/A	N/A
Flexsteel Industries	6.79%	16.10%	9.91%

Earnings and Valuation

This table compares Haier Electronics Group and Flexsteel Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haier Electronics Group	$10.98 billion	1.15	$1.06 billion	$2.11	21.27
Flexsteel Industries	$458.42 million	0.89	$20.15 million	$5.52	13.80

Haier Electronics Group has higher revenue and earnings than Flexsteel Industries. Flexsteel Industries is trading at a lower price-to-earnings ratio than Haier Electronics Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Haier Electronics Group and Flexsteel Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haier Electronics Group	0	0	0	0	0.00
Flexsteel Industries	0	1	1	0	2.50

Risk and Volatility

Haier Electronics Group has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Flexsteel Industries has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Flexsteel Industries beats Haier Electronics Group on 11 of the 16 factors compared between the two stocks.

About Haier Electronics Group

As of December 21, 2020, operates as a subsidiary of Haier Smart Home Co., Ltd.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.