La-Z-Boy (NYSE:LZB – Get Free Report) and Ethan Allen Interiors (NYSE:ETD – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Earnings and Valuation
This table compares La-Z-Boy and Ethan Allen Interiors”s top-line revenue, earnings per share 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 | 15.23 |
| Ethan Allen Interiors | $579.49 million | 0.91 | $39.88 million | $1.56 | 13.46 |
Profitability
This table compares La-Z-Boy and Ethan Allen Interiors’ 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% |
| Ethan Allen Interiors | 6.88% | 7.88% | 5.17% |
Analyst Ratings
This is a breakdown of current ratings and price targets for La-Z-Boy and Ethan Allen Interiors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
| Ethan Allen Interiors | 1 | 2 | 0 | 0 | 1.67 |
La-Z-Boy presently has a consensus target price of $39.50, indicating a potential upside of 31.65%. Ethan Allen Interiors has a consensus target price of $22.00, indicating a potential upside of 4.80%. Given La-Z-Boy’s stronger consensus rating and higher probable upside, equities analysts clearly believe La-Z-Boy is more favorable than Ethan Allen Interiors.
Institutional and Insider Ownership
99.6% of La-Z-Boy shares are owned by institutional investors. Comparatively, 83.8% of Ethan Allen Interiors shares are owned by institutional investors. 3.1% of La-Z-Boy shares are owned by insiders. Comparatively, 9.9% of Ethan Allen Interiors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
La-Z-Boy has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Dividends
La-Z-Boy pays an annual dividend of $0.97 per share and has a dividend yield of 3.2%. Ethan Allen Interiors pays an annual dividend of $1.56 per share and has a dividend yield of 7.4%. La-Z-Boy pays out 49.2% of its earnings in the form of a dividend. Ethan Allen Interiors pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. La-Z-Boy has raised its dividend for 4 consecutive years and Ethan Allen Interiors has raised its dividend for 1 consecutive years.
Summary
La-Z-Boy beats Ethan Allen Interiors on 13 of the 17 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 Ethan Allen Interiors
Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery comprising fabric-covered items, such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. It operates a network of design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
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