Leggett & Platt (NYSE:LEG – Get Free Report) and American Woodmark (NASDAQ:AMWD – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Profitability
This table compares Leggett & Platt and American Woodmark’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leggett & Platt | 3.36% | 20.28% | 3.95% |
| American Woodmark | 5.82% | 11.09% | 6.35% |
Insider & Institutional Ownership
64.2% of Leggett & Platt shares are held by institutional investors. Comparatively, 95.5% of American Woodmark shares are held by institutional investors. 1.6% of Leggett & Platt shares are held by company insiders. Comparatively, 1.7% of American Woodmark shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Analyst Recommendations
This is a summary of current recommendations for Leggett & Platt and American Woodmark, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leggett & Platt | 0 | 3 | 0 | 0 | 2.00 |
| American Woodmark | 1 | 1 | 2 | 0 | 2.25 |
Leggett & Platt presently has a consensus price target of $9.67, indicating a potential upside of 19.34%. American Woodmark has a consensus price target of $83.33, indicating a potential upside of 58.91%. Given American Woodmark’s stronger consensus rating and higher probable upside, analysts clearly believe American Woodmark is more favorable than Leggett & Platt.
Earnings & Valuation
This table compares Leggett & Platt and American Woodmark”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leggett & Platt | $4.31 billion | 0.25 | -$511.50 million | $1.03 | 7.86 |
| American Woodmark | $1.71 billion | 0.44 | $99.46 million | $6.48 | 8.09 |
American Woodmark has lower revenue, but higher earnings than Leggett & Platt. Leggett & Platt is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.
Summary
American Woodmark beats Leggett & Platt on 12 of the 14 factors compared between the two stocks.
About Leggett & Platt
Leggett & Platt, Inc. engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The Bedding Products segment supplies products and components for the home, including mattress springs and specialty foam, as well as adjustable beds, bedding machinery, steel rod, and drawn wire. The Specialized Products segment supplies titanium, nickel, and stainless-steel tubing for the aerospace industry, and serves the construction market with its hydraulic cylinders group. The Flooring, Furniture & Textile Products segment produces an extensive line of components and engineered systems for office, residential, and contract furniture manufacturers. The company was founded by J. P. Products and C. B. Platt in 1883 and is headquartered in Carthage, MO.
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.
Receive News & Ratings for Leggett & Platt Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Leggett & Platt and related companies with MarketBeat.com's FREE daily email newsletter.
