La-Z-Boy (NYSE: LZB) and Whirlpool (NYSE:WHR) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
This is a summary of current recommendations for La-Z-Boy and Whirlpool, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares La-Z-Boy and Whirlpool’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|La-Z-Boy||$1.52 billion||0.91||$85.92 million||$1.73||17.05|
|Whirlpool||$21.25 billion||0.50||$350.00 million||$13.74||10.95|
Whirlpool has higher revenue and earnings than La-Z-Boy. Whirlpool is trading at a lower price-to-earnings ratio than La-Z-Boy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.6% of La-Z-Boy shares are held by institutional investors. Comparatively, 90.3% of Whirlpool shares are held by institutional investors. 3.2% of La-Z-Boy shares are held by company insiders. Comparatively, 2.8% of Whirlpool shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
La-Z-Boy pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Whirlpool pays an annual dividend of $4.40 per share and has a dividend yield of 2.9%. La-Z-Boy pays out 27.7% of its earnings in the form of a dividend. Whirlpool pays out 32.0% 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. Whirlpool has raised its dividend for 7 consecutive years. Whirlpool is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares La-Z-Boy and Whirlpool’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
La-Z-Boy has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Whirlpool has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.
Whirlpool beats La-Z-Boy on 9 of the 16 factors compared between the two stocks.
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.
Whirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products primarily under the Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit, and Hotpoint. Whirlpool Corporation sells its products to retailers, distributors, dealers, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.
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