Contrasting Sleep Number (SNBR) and Ethan Allen Interiors (ETH)
Ethan Allen Interiors (NYSE: ETH) and Sleep Number (NASDAQ:SNBR) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Volatility & Risk
Ethan Allen Interiors has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
This table compares Ethan Allen Interiors and Sleep Number’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ethan Allen Interiors||$763.39 million||1.04||$36.19 million||$1.15||25.17|
|Sleep Number||$1.31 billion||1.13||$51.41 million||$1.41||26.38|
Sleep Number has higher revenue and earnings than Ethan Allen Interiors. Ethan Allen Interiors is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Ethan Allen Interiors and Sleep Number, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ethan Allen Interiors||0||2||2||1||2.80|
Ethan Allen Interiors presently has a consensus target price of $33.50, indicating a potential upside of 15.72%. Sleep Number has a consensus target price of $33.40, indicating a potential downside of 10.22%. Given Ethan Allen Interiors’ stronger consensus rating and higher possible upside, analysts clearly believe Ethan Allen Interiors is more favorable than Sleep Number.
This table compares Ethan Allen Interiors and Sleep Number’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ethan Allen Interiors||4.27%||9.11%||6.39%|
Ethan Allen Interiors pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. Sleep Number does not pay a dividend. Ethan Allen Interiors pays out 66.1% of its earnings in the form of a dividend. Ethan Allen Interiors has raised its dividend for 6 consecutive years.
Institutional and Insider Ownership
99.4% of Ethan Allen Interiors shares are owned by institutional investors. 10.5% of Ethan Allen Interiors shares are owned by insiders. Comparatively, 4.0% of Sleep Number shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Sleep Number beats Ethan Allen Interiors on 10 of the 18 factors compared between the two stocks.
Ethan Allen Interiors Company Profile
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.
Sleep Number Company Profile
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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