HomesToLife (NASDAQ:HTLM) versus Sleep Number (NASDAQ:SNBR) Financial Survey

HomesToLife (NASDAQ:HTLM) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

85.7% of Sleep Number shares are held by institutional investors. 7.5% of Sleep Number shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares HomesToLife and Sleep Number”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomesToLife	$4.17 million	11.84	-$1.67 million	$0.01	336.00
Sleep Number	$1.52 billion	0.07	-$20.33 million	($1.82)	-2.53

HomesToLife has higher earnings, but lower revenue than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for HomesToLife and Sleep Number, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomesToLife	1	0	0	0	1.00
Sleep Number	1	3	0	0	1.75

Sleep Number has a consensus target price of $8.00, suggesting a potential upside of 73.54%. Given Sleep Number’s stronger consensus rating and higher possible upside, analysts clearly believe Sleep Number is more favorable than HomesToLife.

Profitability

This table compares HomesToLife and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomesToLife	N/A	N/A	N/A
Sleep Number	-2.72%	N/A	-4.65%

Summary

HomesToLife beats Sleep Number on 6 of the 11 factors compared between the two stocks.

About HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.