Reviewing Restoration Hardware Holdings (RH) & Haverty Furniture Companies (HVT)
Restoration Hardware Holdings (NYSE: RH) and Haverty Furniture Companies (NYSE:HVT) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitabiliy, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
This table compares Restoration Hardware Holdings and Haverty Furniture Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restoration Hardware Holdings||0.66%||6.42%||2.55%|
|Haverty Furniture Companies||3.59%||10.32%||6.47%|
Earnings and Valuation
This table compares Restoration Hardware Holdings and Haverty Furniture Companies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Restoration Hardware Holdings||$2.24 billion||1.10||$170.90 million||$0.35||211.69|
|Haverty Furniture Companies||$827.70 million||0.52||$74.92 million||$1.37||16.35|
Restoration Hardware Holdings has higher revenue and earnings than Haverty Furniture Companies. Haverty Furniture Companies is trading at a lower price-to-earnings ratio than Restoration Hardware Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Restoration Hardware Holdings and Haverty Furniture Companies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restoration Hardware Holdings||1||12||4||0||2.18|
|Haverty Furniture Companies||0||2||0||0||2.00|
Restoration Hardware Holdings currently has a consensus price target of $53.37, suggesting a potential downside of 27.97%. Haverty Furniture Companies has a consensus price target of $23.00, suggesting a potential upside of 2.68%. Given Haverty Furniture Companies’ higher possible upside, analysts clearly believe Haverty Furniture Companies is more favorable than Restoration Hardware Holdings.
Institutional and Insider Ownership
78.4% of Haverty Furniture Companies shares are held by institutional investors. 18.8% of Restoration Hardware Holdings shares are held by insiders. Comparatively, 10.3% of Haverty Furniture Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Haverty Furniture Companies pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Restoration Hardware Holdings does not pay a dividend. Haverty Furniture Companies pays out 35.0% of its earnings in the form of a dividend.
Volatility and Risk
Restoration Hardware Holdings has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Haverty Furniture Companies has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Restoration Hardware Holdings beats Haverty Furniture Companies on 9 of the 16 factors compared between the two stocks.
About Restoration Hardware Holdings
RH, formerly Restoration Hardware Holdings, Inc., is a retailer in the home furnishings marketplace. As of January 28, 2017, the Company had two segments: RH Segment and Waterworks. It offers merchandise assortments across a range of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings. The Company classifies its sales into furniture and non-furniture product lines. The Furniture category includes both indoor and outdoor furniture. The Non-furniture category includes lighting, textiles, fittings, fixtures, surfaces, accessories and home decor. The Company’s business is integrated across its channels of distribution consisting of its stores, Source Books and Websites. The Company also owns a controlling interest in Design Investors WW Acquisition Company, LLC, which owns the business operating under the name ‘Waterworks’.
About Haverty Furniture Companies
Haverty Furniture Companies, Inc. is a retailer of residential furniture and accessories. The Company sells home furnishings in its retail stores and through its Website, havertys.com. As of December 31, 2016, the Company had 124 stores in 16 states in the Southern and Midwest regions. As of December 31, 2016, the Company’s retail store space totaled approximately 4.5 million square feet for 124 stores. It also offers financing through a third-party finance company, as well as an internal revolving charge credit plan. The Company’s retail locations are operated using the Havertys name. It offers mattress product lines, such as Sealy, Tempur-Pedic, Serta, Stearns & Foster and Beautyrest Black. The Company’s customers are college educated women in middle to upper-middle income households. The Company stores are located in areas, including Florida, Texas, North Carolina, Tennessee and Maryland.
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