Analyzing Haverty Furniture Companies (NYSE:HVT) and Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and Haverty Furniture Companies (NYSE:HVT) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

This table compares Warby Parker and Haverty Furniture Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Haverty Furniture Companies	3.10%	6.96%	3.21%

Analyst Ratings

This is a breakdown of current ratings for Warby Parker and Haverty Furniture Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	1	3	6	1	2.64
Haverty Furniture Companies	0	2	0	0	2.00

Warby Parker currently has a consensus target price of $30.00, indicating a potential upside of 14.92%. Given Warby Parker’s stronger consensus rating and higher probable upside, equities analysts plainly believe Warby Parker is more favorable than Haverty Furniture Companies.

Insider & Institutional Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 80.6% of Haverty Furniture Companies shares are held by institutional investors. 16.8% of Warby Parker shares are held by insiders. Comparatively, 8.4% of Haverty Furniture Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Warby Parker has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Haverty Furniture Companies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Earnings & Valuation

This table compares Warby Parker and Haverty Furniture Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$934.66 million	3.02	$1.64 million	$0.07	372.94
Haverty Furniture Companies	$758.99 million	0.54	$19.73 million	$1.36	19.21

Haverty Furniture Companies has lower revenue, but higher earnings than Warby Parker. Haverty Furniture Companies is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Summary

Warby Parker beats Haverty Furniture Companies on 10 of the 15 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About Haverty Furniture Companies

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Tempur-Pedic, Serta, Sealy, and Stearns and Foster names. The company sells home furnishings through its retail stores, as well as through its website. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.