Reviewing Virco Manufacturing (NASDAQ:VIRC) & HomesToLife (NASDAQ:HTLM)

Virco Manufacturing (NASDAQ:VIRC) and HomesToLife (NASDAQ:HTLM) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Virco Manufacturing has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, HomesToLife has a beta of -1.79, meaning that its stock price is 279% less volatile than the S&P 500.

Insider & Institutional Ownership

31.0% of Virco Manufacturing shares are owned by institutional investors. 18.1% of Virco Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Virco Manufacturing and HomesToLife, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virco Manufacturing	0	2	1	0	2.33
HomesToLife	1	0	0	0	1.00

Virco Manufacturing presently has a consensus price target of $17.00, indicating a potential upside of 130.98%. Given Virco Manufacturing’s stronger consensus rating and higher probable upside, research analysts clearly believe Virco Manufacturing is more favorable than HomesToLife.

Profitability

This table compares Virco Manufacturing and HomesToLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virco Manufacturing	5.74%	12.04%	6.85%
HomesToLife	N/A	N/A	N/A

Earnings & Valuation

This table compares Virco Manufacturing and HomesToLife”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virco Manufacturing	$266.24 million	0.44	$21.64 million	$0.87	8.46
HomesToLife	$4.17 million	10.81	-$1.67 million	$0.04	76.75

Virco Manufacturing has higher revenue and earnings than HomesToLife. Virco Manufacturing is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.

Summary

Virco Manufacturing beats HomesToLife on 12 of the 14 factors compared between the two stocks.

About Virco Manufacturing

Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States and Canada. The company offers seating products, including 4-leg chairs, cantilever chairs, mobile task chairs and lab stools, tablet armchairs, steel-frame and floor rockers, series stools, hard plastic seating, folding and upholstered stack chairs, and plastic stack and upholstered ergonomic chairs. It also provides activity, butcher block, folding, office, technology, and mobile tables; desks and workstations, and instructor media stations and towers; chair desks and combo units, tablet arm and caster units, mobile workstations, student desks, and returns and credenzas; and computer furniture solutions. In addition, the company provides administrative office furniture, including desks, returns, bookcases, and other items, as well as steel storage cabinets, wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables, mobile cabinets, and mobile chairs for school settings and offices; and handling and storage equipment, and stackable storage trucks. It serves public and private educational institutions, charter schools, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealers' network. Virco Mfg. Corporation was incorporated in 1950 and is headquartered in Torrance, California.

About HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.