La-Z-Boy (NYSE:LZB – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares La-Z-Boy and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La-Z-Boy | 3.86% | 11.79% | 6.12% |
| Legacy Housing | 28.56% | 9.53% | 8.74% |
Institutional & Insider Ownership
99.6% of La-Z-Boy shares are owned by institutional investors. Comparatively, 89.3% of Legacy Housing shares are owned by institutional investors. 3.1% of La-Z-Boy shares are owned by company insiders. Comparatively, 30.1% of Legacy Housing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
La-Z-Boy presently has a consensus target price of $39.50, indicating a potential upside of 30.35%. Legacy Housing has a consensus target price of $21.00, indicating a potential downside of 28.01%. Given La-Z-Boy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe La-Z-Boy is more favorable than Legacy Housing.
Volatility and Risk
La-Z-Boy has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares La-Z-Boy and Legacy Housing”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La-Z-Boy | $2.13 billion | 0.57 | $101.99 million | $1.97 | 15.38 |
| Legacy Housing | $164.57 million | 4.22 | $41.81 million | $2.17 | 13.44 |
La-Z-Boy has higher revenue and earnings than Legacy Housing. Legacy Housing 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.
Summary
La-Z-Boy beats Legacy Housing on 9 of the 14 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 Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
Receive News & Ratings for La-Z-Boy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for La-Z-Boy and related companies with MarketBeat.com's FREE daily email newsletter.
