Stanley Furniture Company (STLY) and Fortune Brands Home & Security (FBHS) Critical Analysis
Stanley Furniture Company (NASDAQ: STLY) and Fortune Brands Home & Security (NYSE:FBHS) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitabiliy and dividends.
Fortune Brands Home & Security pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Stanley Furniture Company does not pay a dividend. Fortune Brands Home & Security pays out 26.3% of its earnings in the form of a dividend. Stanley Furniture Company has increased its dividend for 3 consecutive years.
Volatility and Risk
Stanley Furniture Company has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Fortune Brands Home & Security has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Earnings and Valuation
This table compares Stanley Furniture Company and Fortune Brands Home & Security’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stanley Furniture Company||$44.08 million||0.41||-$4.75 million||($0.30)||-4.10|
|Fortune Brands Home & Security||$5.07 billion||1.97||$794.90 million||$2.74||23.65|
Fortune Brands Home & Security has higher revenue and earnings than Stanley Furniture Company. Stanley Furniture Company is trading at a lower price-to-earnings ratio than Fortune Brands Home & Security, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
30.8% of Stanley Furniture Company shares are held by institutional investors. Comparatively, 85.9% of Fortune Brands Home & Security shares are held by institutional investors. 28.6% of Stanley Furniture Company shares are held by company insiders. Comparatively, 1.6% of Fortune Brands Home & Security shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Stanley Furniture Company and Fortune Brands Home & Security’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Furniture Company||-9.50%||-19.43%||-12.29%|
|Fortune Brands Home & Security||8.48%||19.01%||8.72%|
This is a breakdown of recent recommendations and price targets for Stanley Furniture Company and Fortune Brands Home & Security, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Furniture Company||0||0||0||0||N/A|
|Fortune Brands Home & Security||0||7||10||0||2.59|
Fortune Brands Home & Security has a consensus target price of $66.58, indicating a potential upside of 2.75%. Given Fortune Brands Home & Security’s higher possible upside, analysts clearly believe Fortune Brands Home & Security is more favorable than Stanley Furniture Company.
Fortune Brands Home & Security beats Stanley Furniture Company on 12 of the 15 factors compared between the two stocks.
About Stanley Furniture Company
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.
About Fortune Brands Home & Security
Fortune Brands Home & Security, Inc. is a holding company. The Company operates through four segments. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names, including Aristokraft, Mid-Continent, Diamond, Kitchen Classics, Kitchen Craft, Schrock, Omega, Homecrest, Thomasville, StarMark and Ultracraft. The Plumbing segment manufactures or assembles and sells faucets, bath furnishings, accessories and kitchen sinks and waste disposals under the Moen, Riobel, ROHL, Perrin & Rowe, and Waste King brands. The Doors segment includes residential fiberglass and steel entry door systems under the Therma-Tru brand name and urethane millwork product lines under the Fypon brand name. The Security segment includes locks, safety and security devices and electronic security products under the Master Lock brand name and fire resistant safes, security containers and commercial cabinets under the SentrySafe brand name.
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