Analyzing Nova LifeStyle (NVFY) and The Competition

Nova LifeStyle (NASDAQ:NVFYGet Rating) is one of 14 public companies in the “Household furniture” industry, but how does it compare to its competitors? We will compare Nova LifeStyle to similar companies based on the strength of its valuation, risk, earnings, analyst recommendations, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares Nova LifeStyle and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nova LifeStyle $12.81 million -$19.96 million -0.29
Nova LifeStyle Competitors $1.47 billion $103.48 million 9.60

Nova LifeStyle’s competitors have higher revenue and earnings than Nova LifeStyle. Nova LifeStyle is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Nova LifeStyle and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nova LifeStyle -155.80% -43.89% -37.73%
Nova LifeStyle Competitors -9.91% -15.51% -0.66%

Risk and Volatility

Nova LifeStyle has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Nova LifeStyle’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nova LifeStyle and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nova LifeStyle 0 0 0 0 N/A
Nova LifeStyle Competitors 91 432 523 40 2.47

As a group, “Household furniture” companies have a potential upside of 36.84%. Given Nova LifeStyle’s competitors higher probable upside, analysts plainly believe Nova LifeStyle has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

7.6% of Nova LifeStyle shares are held by institutional investors. Comparatively, 61.9% of shares of all “Household furniture” companies are held by institutional investors. 40.4% of Nova LifeStyle shares are held by insiders. Comparatively, 9.5% of shares of all “Household furniture” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Nova LifeStyle competitors beat Nova LifeStyle on 8 of the 10 factors compared.

About Nova LifeStyle (Get Rating)

Nova LifeStyle, Inc., through its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based furniture pieces for the living, dining, and bedrooms, as well as home offices. Its products include sofas, chairs, dining and coffee tables, beds, entertainment consoles, cabinets, and cupboards. The company also provides physiotherapeutic jade mats for use in therapy clinic, hospitality, and real estate projects. It distributes its products under the Diamond Sofa brand directly, as well as through internet sales and online marketing campaigns, and participation in exhibitions and trade shows primarily to furniture distributors and retailers. The company was formerly known as Stevens Resources, Inc. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.

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