Financial Review: Dorel Industries (OTCMKTS:DIIBF) versus Sleep Number (NASDAQ:SNBR)

Sleep Number (NASDAQ:SNBR) and Dorel Industries (OTCMKTS:DIIBF) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Volatility and Risk

Sleep Number has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

85.7% of Sleep Number shares are held by institutional investors. 3.6% of Sleep Number shares are held by insiders. Comparatively, 19.3% of Dorel Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sleep Number and Dorel Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02
Dorel Industries	$1.19 billion	0.02	-$142.22 million	($2.81)	-0.30

Sleep Number has higher revenue and earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Sleep Number and Dorel Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	2	2	0	0	1.50
Dorel Industries	0	1	0	0	2.00

Sleep Number currently has a consensus price target of $3.50, indicating a potential upside of 2,700.00%. Given Sleep Number’s higher possible upside, equities analysts plainly believe Sleep Number is more favorable than Dorel Industries.

Profitability

This table compares Sleep Number and Dorel Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-12.98%	N/A	-16.48%
Dorel Industries	-8.90%	N/A	-10.11%

About Sleep Number

Sleep Number Corporation designs, manufactures and sells smart beds and related sleep products. Its beds feature adjustable firmness, allowing sleepers to customize support on each side, and select models include technology that tracks sleep activity. The company also offers adjustable bases, mattresses, pillows and bedding. Founded in 1987 as Select Comfort, the company adopted the Sleep Number name in 2017. It sells its products primarily in the United States through its retail stores, website and other direct-sales channels.

About Dorel Industries

Dorel Industries Inc. was a Canadian consumer-products company headquartered in Montreal, Quebec. Founded in 1962, the company developed and marketed products through three principal business areas: juvenile products, home furnishings and recreational products. Its brands and operations served consumers through major retailers, e-commerce channels and specialty dealers in North America, Europe, Latin America and other international markets. Dorel Juvenile produced car seats, strollers, playards, high chairs and other infant and child-care products.