HNI Corporation (NYSE: HNI) and Intersections (NASDAQ:INTX) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Volatility & Risk

HNI Corporation has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Intersections has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares HNI Corporation and Intersections’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HNI Corporation $2.16 billion 0.74 $220.67 million $1.40 25.90
Intersections $165.65 million 0.43 -$18.41 million ($1.35) -2.19

HNI Corporation has higher revenue and earnings than Intersections. Intersections is trading at a lower price-to-earnings ratio than HNI Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for HNI Corporation and Intersections, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HNI Corporation 1 1 3 0 2.40
Intersections 0 0 0 0 N/A

HNI Corporation presently has a consensus target price of $44.50, suggesting a potential upside of 22.72%. Given HNI Corporation’s higher probable upside, equities research analysts plainly believe HNI Corporation is more favorable than Intersections.

Profitability

This table compares HNI Corporation and Intersections’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HNI Corporation 2.94% 20.82% 7.77%
Intersections -19.25% -421.25% -56.54%

Dividends

HNI Corporation pays an annual dividend of $1.14 per share and has a dividend yield of 3.1%. Intersections does not pay a dividend. HNI Corporation pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HNI Corporation has increased its dividend for 5 consecutive years.

Institutional & Insider Ownership

69.6% of HNI Corporation shares are owned by institutional investors. Comparatively, 25.2% of Intersections shares are owned by institutional investors. 5.2% of HNI Corporation shares are owned by company insiders. Comparatively, 67.0% of Intersections shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

HNI Corporation beats Intersections on 13 of the 15 factors compared between the two stocks.

HNI Corporation Company Profile

HNI Corporation is a provider of office furniture and hearth products. The Company’s office furniture products include panel-based and freestanding furniture systems, seating, storage and tables. The Company’s segments include office furniture and hearth products. The office furniture segment manufactures and markets a line of metal and wood commercial and home office furniture, which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions, and panel systems and other related products. The hearth products segment manufactures and markets a line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home. It offers hearth products under various brands, such as Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman Stove, Vermont Castings and PelPro. Its office furniture products are sold under various brands, such as HON, OFM, basyx by HON, Lamex and ERGO.

Intersections Company Profile

Intersections Inc. uses data to enable consumers reduce risk through subscription services. The Company’s operating segments include Personal Information Services, Insurance and Other Consumer Services, and Bail Bonds Industry Solutions. The Company’s Personal Information Services business segment focuses on helping consumers understand, monitor, manage and protect against the risks associated with third parties misusing their personal information and violating their privacy. The Company’s Insurance and Other Consumer Services business segment focuses on helping consumers use insurance and other services to manage various personal risks and achieve personal goals. The Company’s Bail Bonds Industry Solutions business segment focuses on automating the bail bonds industry. The Company offers IDENTITY GUARD portfolio of services. The Company’s insurance products are sold and administered pursuant to contracts with insurance companies.

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