Herman Miller (NASDAQ: MLHR) and HNI (NYSE:HNI) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
This table compares Herman Miller and HNI’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Herman Miller and HNI’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Herman Miller||$2.28 billion||0.84||$123.90 million||$2.16||14.79|
|HNI||$2.18 billion||0.72||$89.79 million||$1.97||18.32|
Herman Miller has higher revenue and earnings than HNI. Herman Miller is trading at a lower price-to-earnings ratio than HNI, indicating that it is currently the more affordable of the two stocks.
Herman Miller pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. HNI pays an annual dividend of $1.14 per share and has a dividend yield of 3.2%. Herman Miller pays out 33.3% of its earnings in the form of a dividend. HNI pays out 57.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HNI has raised its dividend for 6 consecutive years. HNI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Herman Miller has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, HNI has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Institutional & Insider Ownership
82.7% of Herman Miller shares are owned by institutional investors. Comparatively, 72.8% of HNI shares are owned by institutional investors. 1.9% of Herman Miller shares are owned by company insiders. Comparatively, 4.9% of HNI 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.
This is a breakdown of recent ratings for Herman Miller and HNI, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Herman Miller currently has a consensus price target of $40.50, suggesting a potential upside of 26.76%. HNI has a consensus price target of $42.00, suggesting a potential upside of 16.38%. Given Herman Miller’s stronger consensus rating and higher probable upside, analysts clearly believe Herman Miller is more favorable than HNI.
Herman Miller beats HNI on 13 of the 17 factors compared between the two stocks.
About Herman Miller
Herman Miller, Inc. is engaged in the research, design, manufacture, sale and distribution of office furniture systems, seating products, home furnishings and related services, among others. The Company’s segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors.
HNI Corporation is a provider of office furniture and hearth products. The Company’s office furniture products include panel-based and freestanding furniture systems, seating, storage and tables. The Company’s segments include office furniture and hearth products. The office furniture segment manufactures and markets a line of metal and wood commercial and home office furniture, which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions, and panel systems and other related products. The hearth products segment manufactures and markets a line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home. It offers hearth products under various brands, such as Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman Stove, Vermont Castings and PelPro. Its office furniture products are sold under various brands, such as HON, OFM, basyx by HON, Lamex and ERGO.
Receive News & Ratings for Herman Miller Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Herman Miller and related companies with MarketBeat.com's FREE daily email newsletter.