Select Comfort Corporation (NASDAQ: SNBR) and Stanley Furniture (NASDAQ:STLY) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Select Comfort Corporation and Stanley Furniture, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Comfort Corporation 1 3 3 0 2.29
Stanley Furniture 0 0 0 0 N/A

Select Comfort Corporation currently has a consensus target price of $33.40, indicating a potential downside of 4.30%. Given Select Comfort Corporation’s higher possible upside, equities research analysts plainly believe Select Comfort Corporation is more favorable than Stanley Furniture.

Insider and Institutional Ownership

28.9% of Stanley Furniture shares are owned by institutional investors. 4.0% of Select Comfort Corporation shares are owned by insiders. Comparatively, 28.6% of Stanley Furniture shares are owned 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 & Volatility

Select Comfort Corporation has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Stanley Furniture has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares Select Comfort Corporation and Stanley Furniture’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Comfort Corporation 4.34% 51.12% 14.26%
Stanley Furniture -2.34% -10.31% -5.70%

Valuation & Earnings

This table compares Select Comfort Corporation and Stanley Furniture’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Select Comfort Corporation $1.31 billion 1.06 $51.41 million $1.41 24.75
Stanley Furniture $44.57 million 0.28 -$5.25 million ($0.07) -11.86

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

Summary

Select Comfort Corporation beats Stanley Furniture on 10 of the 12 factors compared between the two stocks.

Select Comfort Corporation Company Profile

Sleep Number Corporation, formerly Select Comfort Corporation, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep. The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products. It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.

Stanley Furniture Company Profile

Stanley Furniture Company, Inc. is a design, marketing and sourcing resource in the wood residential furniture market. The Company’s segment is sale of residential wood furniture products. The Company markets its brands through a network of brick-and-mortar furniture retailers, online retailers and interior designers around the world. The Company’s products are marketed under the Stanley Furniture brand, but also under sub-brands, including Coastal Living and Stone & Leigh. The Company’s products are marketed as wood residential home furnishings and include a range of offerings for the home, including dining, bedroom, living room, home office, home entertainment, accent items, and nursery and youth furniture. The Company provides products in a range of wood species and finishes. The Company’s product is sourced from independently owned factories in Southeast Asia, primarily in Vietnam.

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