Natuzzi, S.p.A (NYSE:NTZ) and La-Z-Boy (NYSE:LZB) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares Natuzzi, S.p.A and La-Z-Boy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natuzzi, S.p.A -6.54% -27.92% -9.05%
La-Z-Boy 5.43% 15.33% 10.54%

Volatility & Risk

Natuzzi, S.p.A has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Dividends

La-Z-Boy pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Natuzzi, S.p.A does not pay a dividend. La-Z-Boy pays out 26.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Natuzzi, S.p.A and La-Z-Boy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natuzzi, S.p.A 0 0 0 0 N/A
La-Z-Boy 0 1 0 0 2.00

La-Z-Boy has a consensus price target of $35.00, indicating a potential upside of 25.09%. Given La-Z-Boy’s higher probable upside, analysts plainly believe La-Z-Boy is more favorable than Natuzzi, S.p.A.

Earnings & Valuation

This table compares Natuzzi, S.p.A and La-Z-Boy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natuzzi, S.p.A $529.49 million 0.11 -$35.49 million N/A N/A
La-Z-Boy $1.58 billion 0.82 $80.86 million $1.81 15.46

La-Z-Boy has higher revenue and earnings than Natuzzi, S.p.A.

Insider & Institutional Ownership

16.5% of Natuzzi, S.p.A shares are owned by institutional investors. Comparatively, 89.7% of La-Z-Boy shares are owned by institutional investors. 4.6% of La-Z-Boy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

La-Z-Boy beats Natuzzi, S.p.A on 11 of the 12 factors compared between the two stocks.

About Natuzzi, S.p.A

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. The company operates through Natuzzi Brand and Softaly/Private Label segments. Its products primarily include stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; and furnishings and accessories for the living room and beds, bed linens, and bedroom furnishings. The company sells its products primarily under the Natuzzi Italia, Natuzzi Re-vive, Natuzzi Editions, and Softaly brand names. It also sells its leather-upholstered products through franchised Divani&Divani by Natuzzi, and Natuzzi Italia furniture stores. As of March 31, 2018, the company operated 205 Natuzzi Italia stores, 147 Natuzzi Editions stores, and 79 Divani&Divani by Natuzzi stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was founded in 1959 and is headquartered in Santeramo in Colle, Italy.

About La-Z-Boy

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Upholstery, Casegoods, and Retail segments. The Upholstery segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of Comfort Studios and England custom comfort center locations, dealers, and other independent retailers. The Casegoods segment imports, markets, and distributes casegoods (wood) furniture, including bedroom sets, dining room sets, entertainment centers, and occasional pieces, as well as manufactures upholstered furniture. This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brands. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 350 La-Z-Boy Furniture Galleries stores and 535 Comfort Studio locations, as well as in-store programs with 542 outlets in Kincaid and England. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.

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