Tempur Sealy International (NYSE: TPX) and Select Comfort (NASDAQ:SNBR) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Earnings & Valuation

This table compares Tempur Sealy International and Select Comfort’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tempur Sealy International $3.13 billion 1.00 $202.10 million $3.00 19.30
Select Comfort $1.31 billion 1.07 $51.41 million $1.41 24.96

Tempur Sealy International has higher revenue and earnings than Select Comfort. Tempur Sealy International is trading at a lower price-to-earnings ratio than Select Comfort, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tempur Sealy International and Select Comfort, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tempur Sealy International 1 7 3 1 2.33
Select Comfort 1 3 3 0 2.29

Tempur Sealy International presently has a consensus price target of $64.29, indicating a potential upside of 11.01%. Select Comfort has a consensus price target of $33.40, indicating a potential downside of 5.09%. Given Tempur Sealy International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tempur Sealy International is more favorable than Select Comfort.

Risk & Volatility

Tempur Sealy International has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Select Comfort has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Tempur Sealy International and Select Comfort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tempur Sealy International 5.79% 1,042.63% 7.32%
Select Comfort 4.34% 51.12% 14.26%

Summary

Tempur Sealy International beats Select Comfort on 9 of the 12 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 Select Comfort

Sleep Number Corporation, formerly Select Comfort Corporation, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep. The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products. It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.

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