Bassett Furniture Industries, (NASDAQ: BSET) and Hooker Furniture Corporation (NASDAQ:HOFT) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitabiliy, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Bassett Furniture Industries, and Hooker Furniture Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bassett Furniture Industries, 0 1 0 0 2.00
Hooker Furniture Corporation 0 0 1 0 3.00

Bassett Furniture Industries, presently has a consensus target price of $28.00, indicating a potential downside of 12.36%. Given Bassett Furniture Industries,’s higher probable upside, equities research analysts clearly believe Bassett Furniture Industries, is more favorable than Hooker Furniture Corporation.

Valuation & Earnings

This table compares Bassett Furniture Industries, and Hooker Furniture Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bassett Furniture Industries, $431.06 million 0.79 $39.85 million $1.43 22.34
Hooker Furniture Corporation $586.26 million 0.78 $48.13 million $2.38 16.58

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

Dividends

Bassett Furniture Industries, pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Hooker Furniture Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Bassett Furniture Industries, pays out 28.0% of its earnings in the form of a dividend. Hooker Furniture Corporation pays out 20.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

71.4% of Bassett Furniture Industries, shares are owned by institutional investors. Comparatively, 84.1% of Hooker Furniture Corporation shares are owned by institutional investors. 6.4% of Bassett Furniture Industries, shares are owned by insiders. Comparatively, 2.9% of Hooker Furniture Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Bassett Furniture Industries, has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Hooker Furniture Corporation has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Bassett Furniture Industries, and Hooker Furniture Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bassett Furniture Industries, 3.59% 8.62% 5.70%
Hooker Furniture Corporation 4.70% 14.53% 9.09%

Summary

Hooker Furniture Corporation beats Bassett Furniture Industries, on 10 of the 16 factors compared between the two stocks.

Bassett Furniture Industries, Company Profile

Bassett Furniture Industries, Incorporated is a manufacturer, importer and retailer of home furnishings. The Company’s segments include Wholesale, Retail – Company-owned stores and Logistical services. Its wholesale home furnishings segment is involved in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (licensee-owned stores and Company-owned stores) and independent furniture retailers. Its retail segment consists of Company-owned stores. It operates its logistical services segment through its subsidiary, Zenith Freight Lines, LLC, which provides shipping, delivery and warehousing services. Its portfolio of products includes Canopy Bed, Nightstands, Baby Bedding, Bedside Tables, Chaise Lounge, Writing Desks, Kitchen Furniture, Computer Hutch, Game Tables and Fabric Ottomans. Its range of furniture products and accessories are sold through a nation-wide network of over 90 retail stores known as Bassett Home Furnishings.

Hooker Furniture Corporation Company Profile

Hooker Furniture Corporation is a home furnishings marketing, design and logistics company offering sourcing of residential casegoods and upholstery, as well as domestically-produced leather and fabric-upholstered furniture. The Company operates through three segments: casegoods furniture, upholstered furniture and all other. The Company’s casegoods product categories include accents, home office, dining, bedroom and home entertainment furniture under the Hooker Furniture brand. Its residential upholstered seating companies include Bradington-Young, which is engaged in upscale motion and stationary leather furniture, and Sam Moore Furniture, which is engaged in upscale occasional chairs, settees, sofas and sectional seating with a focus on cover-to-frame customization. It also markets a line of imported leather upholstery under the Hooker Upholstery trade name. All other segment operates under the H Contract and Homeware brands.

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