Stanley Furniture (NASDAQ: STLY) and Hooker Furniture Corporation (NASDAQ:HOFT) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitabiliy, earnings, valuation, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Stanley Furniture 0.12% 0.29% 0.16%
Hooker Furniture Corporation 4.70% 14.53% 9.09%

Institutional and Insider Ownership

29.9% of Stanley Furniture shares are held by institutional investors. Comparatively, 83.3% of Hooker Furniture Corporation shares are held by institutional investors. 28.6% of Stanley Furniture shares are held by insiders. Comparatively, 2.9% of Hooker Furniture Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Stanley Furniture has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Hooker Furniture Corporation has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Stanley Furniture and Hooker Furniture Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stanley Furniture 0 0 0 0 N/A
Hooker Furniture Corporation 0 0 0 0 N/A

Dividends

Hooker Furniture Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Stanley Furniture does not pay a dividend. Hooker Furniture Corporation pays out 20.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Stanley Furniture and Hooker Furniture Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stanley Furniture $43.64 million 0.41 -$3.31 million ($0.20) -5.95
Hooker Furniture Corporation $586.26 million 0.83 $48.13 million $2.38 17.79

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

Summary

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

About Stanley Furniture

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 Hooker Furniture Corporation

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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