Critical Contrast: Bassett Furniture Industries, (BSET) versus Ethan Allen Interiors (NYSE:ETH)
Bassett Furniture Industries, (NASDAQ: BSET) and Ethan Allen Interiors (NYSE:ETH) 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 earnings, institutional ownership, valuation, risk, dividends, profitabiliy and analyst recommendations.
Bassett Furniture Industries, pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Ethan Allen Interiors pays an annual dividend of $0.76 per share and has a dividend yield of 2.5%. Bassett Furniture Industries, pays out 24.1% of its earnings in the form of a dividend. Ethan Allen Interiors pays out 51.7% 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. Bassett Furniture Industries, has increased its dividend for 6 consecutive years.
Institutional & Insider Ownership
71.3% of Bassett Furniture Industries, shares are held by institutional investors. Comparatively, 99.2% of Ethan Allen Interiors shares are held by institutional investors. 6.4% of Bassett Furniture Industries, shares are held by company insiders. Comparatively, 11.0% of Ethan Allen Interiors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Bassett Furniture Industries, and Ethan Allen Interiors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bassett Furniture Industries,||4.08%||9.05%||6.02%|
|Ethan Allen Interiors||5.33%||11.31%||7.74%|
Earnings & Valuation
This table compares Bassett Furniture Industries, and Ethan Allen Interiors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bassett Furniture Industries,||$438.52 million||0.92||$42.16 million||$1.66||22.59|
|Ethan Allen Interiors||$774.15 million||1.10||$84.86 million||$1.47||20.92|
Ethan Allen Interiors has higher revenue and earnings than Bassett Furniture Industries,. Ethan Allen Interiors 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.
This is a summary of recent ratings and recommmendations for Bassett Furniture Industries, and Ethan Allen Interiors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bassett Furniture Industries,||0||1||0||0||2.00|
|Ethan Allen Interiors||0||5||1||1||2.43|
Bassett Furniture Industries, currently has a consensus target price of $36.00, indicating a potential downside of 4.00%. Ethan Allen Interiors has a consensus target price of $35.00, indicating a potential upside of 13.82%. Given Ethan Allen Interiors’ stronger consensus rating and higher probable upside, analysts clearly believe Ethan Allen Interiors is more favorable than Bassett Furniture Industries,.
Volatility and Risk
Bassett Furniture Industries, has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Ethan Allen Interiors has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.
Ethan Allen Interiors beats Bassett Furniture Industries, on 14 of the 18 factors compared between the two stocks.
About Bassett Furniture Industries,
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.
About Ethan Allen Interiors
Ethan Allen Interiors Inc. is an interior design company. The Company is a manufacturer and retailer of home furnishings. The Company operates through two segments, which include wholesale and retail. The Company is an international home fashion brand doing business in North America, Europe, Asia and the Middle East. It offers complimentary interior design service to its clients and sells a range of furniture products and decorative accents through ethanallen.com and a network of design centers in the United States and abroad. Its wholesale segment, principally involved in the development of the Ethan Allen brand, encompasses various aspects of design, manufacture, sourcing, sale, and distribution of its range of home furnishings and accents. The Company’s retail segment sells home furnishings and accents to consumers through a network of Company-operated design centers. As of June 30, 2016, the Company owned and operated nine manufacturing facilities.
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