Select Comfort Corporation (NASDAQ: SNBR) and La-Z-Boy (NYSE:LZB) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Select Comfort Corporation and La-Z-Boy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Comfort Corporation 1 3 3 0 2.29
La-Z-Boy 0 3 1 0 2.25

Select Comfort Corporation currently has a consensus target price of $33.40, suggesting a potential downside of 2.62%. La-Z-Boy has a consensus target price of $33.00, suggesting a potential upside of 18.92%. Given La-Z-Boy’s higher possible upside, analysts plainly believe La-Z-Boy is more favorable than Select Comfort Corporation.

Earnings and Valuation

This table compares Select Comfort Corporation and La-Z-Boy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Select Comfort Corporation $1.31 billion 1.04 $51.41 million $1.41 24.33
La-Z-Boy $1.52 billion 0.89 $85.92 million $1.70 16.32

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

Profitability

This table compares Select Comfort Corporation and La-Z-Boy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Comfort Corporation 4.34% 51.12% 14.26%
La-Z-Boy 5.45% 14.18% 9.73%

Risk & Volatility

Select Comfort Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

84.4% of La-Z-Boy shares are owned by institutional investors. 4.0% of Select Comfort Corporation shares are owned by company insiders. Comparatively, 3.2% of La-Z-Boy 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.

Dividends

La-Z-Boy pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Select Comfort Corporation does not pay a dividend. La-Z-Boy pays out 25.9% of its earnings in the form of a dividend.

About Select Comfort Corporation

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.

About La-Z-Boy

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company also imports, distributes and retails accessories and casegoods (wood) furniture products. The Company’s segments include the Upholstery segment, the Casegoods segment and the Retail segment. The Company is the producer of reclining chairs and manufacturer/distributor of residential furniture in the United States. The Company sells its products, primarily in the United States and Canada, as well as internationally, to furniture retailers and directly to consumers through stores that it owns and operates. The Company has a network of approximately 340 La-Z-Boy Furniture Galleries stores and over 560 Comfort Studio locations. The Company owns approximately 120 of the La-Z-Boy Furniture Galleries stores. The Company’s other brands include England, Kincaid, American Drew and Hammary.

Receive News & Ratings for Select Comfort Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Select Comfort Corporation and related companies with MarketBeat.com's FREE daily email newsletter.