Hooker Furniture (HOFT) and Leggett & Platt (LEG) Critical Comparison

Hooker Furniture (NASDAQ: HOFT) and Leggett & Platt (NYSE:LEG) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Hooker Furniture and Leggett & Platt, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hooker Furniture 0 0 0 0 N/A
Leggett & Platt 0 3 3 0 2.50



Leggett & Platt has a consensus price target of $52.20, indicating a potential upside of 24.82%. Given Leggett & Platt’s higher probable upside, analysts plainly believe Leggett & Platt is more favorable than Hooker Furniture.

Risk & Volatility

Hooker Furniture has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Leggett & Platt has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hooker Furniture and Leggett & Platt’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hooker Furniture $620.63 million 0.72 $28.25 million N/A N/A
Leggett & Platt $3.94 billion 1.39 $292.60 million $2.46 17.00

Leggett & Platt has higher revenue and earnings than Hooker Furniture.

Profitability

This table compares Hooker Furniture and Leggett & Platt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hooker Furniture 4.60% 14.08% 9.23%
Leggett & Platt 7.09% 27.92% 9.46%

Dividends

Hooker Furniture pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Leggett & Platt pays an annual dividend of $1.44 per share and has a dividend yield of 3.4%. Leggett & Platt pays out 58.5% of its earnings in the form of a dividend. Leggett & Platt has increased its dividend for 46 consecutive years. Leggett & Platt is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

85.8% of Hooker Furniture shares are held by institutional investors. Comparatively, 74.8% of Leggett & Platt shares are held by institutional investors. 2.5% of Hooker Furniture shares are held by company insiders. Comparatively, 1.5% of Leggett & Platt shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Leggett & Platt beats Hooker Furniture on 12 of the 15 factors compared between the two stocks.

Hooker Furniture Company Profile

Hooker Furniture Corporation, together with its subsidiaries, designs, manufactures, imports, and markets residential household furniture products in the United States. It operates through Hooker Branded, Home Meridian, and All Other segments. The Hooker Branded segment offers a range of design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand name; and imported upholstered furniture. The Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brand names; and leather motion upholstery under the Prime Resources brand, as well as designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name. The All Other segment offers motion and stationary leather furniture under the Bradington-Young brand; occasional chairs, settees, sofas, and sectional seating under the Sam Moore Furniture brand name; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. This segment also supplies upholstered seating and case goods under the H Contract brand name. The company's home furnishings products are sold through retailers comprising independent furniture stores, department stores, mass merchants, national chains, warehouse clubs, catalog merchants, interior designers, and e-commerce retailers. Hooker Furniture Corporation was founded in 1924 and is headquartered in Martinsville, Virginia.

Leggett & Platt Company Profile

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, and Specialized Products. The Residential Products segment offers innersprings, wire forms, and machines to shape wire into various types of springs; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and geo components. It serves manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. The Furniture Products segment offers molded plywood components; bases, columns, back rests, control devices, and casters and frames; private-label finished furniture; beds and bed frames; adjustable beds; and steel mechanisms and hardware, and springs and seat suspensions. It serves upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. The Industrial Products segment offers drawn wires, bedding and furniture components, automotive seat suspension systems, and steel rods. It serves packaging and baling companies, mechanical spring manufacturers, and wire distributors. The Specialized Products segment offers mechanical and pneumatic lumbar support and massage systems, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless steel tubing, formed tube, and tube assemblies; and engineered hydraulic cylinders. It serves automobile and mobile equipment OEMs, and aerospace suppliers. The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is headquartered in Carthage, Missouri.

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