Comparing Tempur Sealy International (TPX) and Stanley Furniture (STLY)
Tempur Sealy International (NYSE: TPX) and Stanley Furniture (NASDAQ:STLY) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
This is a summary of current ratings and price targets for Tempur Sealy International and Stanley Furniture, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tempur Sealy International||1||9||1||1||2.17|
Tempur Sealy International currently has a consensus target price of $62.50, suggesting a potential upside of 1.87%. Given Tempur Sealy International’s higher probable upside, analysts clearly believe Tempur Sealy International is more favorable than Stanley Furniture.
Risk and Volatility
Tempur Sealy International has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Stanley Furniture has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
This table compares Tempur Sealy International and Stanley Furniture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tempur Sealy International||6.69%||617.75%||8.15%|
Institutional and Insider Ownership
30.0% of Stanley Furniture shares are held by institutional investors. 2.1% of Tempur Sealy International shares are held by company insiders. Comparatively, 28.6% of Stanley Furniture shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Tempur Sealy International and Stanley Furniture’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tempur Sealy International||$2.98 billion||1.11||$445.50 million||$3.51||17.48|
|Stanley Furniture||$43.64 million||0.38||-$3.31 million||($0.20)||-5.45|
Tempur Sealy International has higher revenue and earnings than Stanley Furniture. Stanley Furniture is trading at a lower price-to-earnings ratio than Tempur Sealy International, indicating that it is currently the more affordable of the two stocks.
Tempur Sealy International beats Stanley Furniture on 11 of the 13 factors compared between the two stocks.
About Tempur Sealy International
Tempur Sealy International, Inc. is a bedding manufacturer. The Company develops, manufactures, markets and distributes bedding products. The Company operates in two segments: North America and International. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the United States and Canada. Its International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. Its brand portfolio includes TEMPUR, Tempur-Pedic, Sealy, Sealy Posturepedic, and Stearns & Foster. It offers its products in over two categories, including Bedding, which includes mattresses, foundations and adjustable foundations, and Other, which includes pillows, mattress covers, sheets, cushions and various other comfort products. As of December 31, 2016, it sold its products across the globe in approximately 100 countries.
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.
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