American Woodmark (NASDAQ:AMWD) & Sleep Number (NASDAQ:SNBR) Head to Head Contrast

American Woodmark (NASDAQ:AMWD) and Sleep Number (NASDAQ:SNBR) 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 analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

95.5% of American Woodmark shares are owned by institutional investors. Comparatively, 85.7% of Sleep Number shares are owned by institutional investors. 1.7% of American Woodmark shares are owned by company insiders. Comparatively, 7.5% of Sleep Number shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares American Woodmark and Sleep Number”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Woodmark	$1.71 billion	0.46	$99.46 million	$6.48	8.31
Sleep Number	$1.68 billion	0.10	-$20.33 million	($0.95)	-7.66

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

Analyst Recommendations

This is a summary of current ratings for American Woodmark and Sleep Number, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Woodmark	1	1	2	0	2.25
Sleep Number	0	2	0	0	2.00

American Woodmark currently has a consensus target price of $83.33, suggesting a potential upside of 54.75%. Sleep Number has a consensus target price of $8.33, suggesting a potential upside of 14.47%. Given American Woodmark’s stronger consensus rating and higher probable upside, equities analysts plainly believe American Woodmark is more favorable than Sleep Number.

Volatility and Risk

American Woodmark has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares American Woodmark and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Woodmark	5.82%	11.09%	6.35%
Sleep Number	-1.34%	N/A	-2.07%

Summary

American Woodmark beats Sleep Number on 12 of the 14 factors compared between the two stocks.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.