Contrasting Flexsteel Industries (NASDAQ:FLXS) & Bassett Furniture Industries (NASDAQ:BSET)

Earnings and Valuation

This table compares Flexsteel Industries and Bassett Furniture Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexsteel Industries	$441.07 million	0.53	$10.53 million	$3.54	12.42
Bassett Furniture Industries	$329.92 million	0.43	-$9.69 million	$0.29	55.69

Flexsteel Industries has higher revenue and earnings than Bassett Furniture Industries. Flexsteel Industries is trading at a lower price-to-earnings ratio than Bassett Furniture Industries, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Flexsteel Industries has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

36.3% of Flexsteel Industries shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 15.6% of Flexsteel Industries shares are owned by company insiders. Comparatively, 7.3% of Bassett Furniture Industries 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.

Profitability

This table compares Flexsteel Industries and Bassett Furniture Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexsteel Industries	4.57%	14.96%	8.81%
Bassett Furniture Industries	0.76%	1.48%	0.74%

Dividends

Flexsteel Industries pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 5.0%. Flexsteel Industries pays out 22.6% of its earnings in the form of a dividend. Bassett Furniture Industries pays out 275.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flexsteel Industries has increased its dividend for 1 consecutive years and Bassett Furniture Industries has increased its dividend for 4 consecutive years. Bassett Furniture Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Flexsteel Industries beats Bassett Furniture Industries on 9 of the 14 factors compared between the two stocks.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.

About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated, together with its subsidiaries, manufactures, markets, and retails home furnishings in the United States and internationally. It operates in three segments: Wholesale, Retail Company-Owned Stores, and Corporate and Other. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products, including dining, bedroom and bedding, home decorations, rugs, and outdoor furniture to a network of company-owned retail stores, licensee-owned stores, and independent retailers. The company also distributes its products through multi-line furniture stores, including Bassett galleries or design centers, as well as sells online; and engages in wood and upholstery operations. In addition, it owns and leases land, retail store properties, warehouses, and distribution centers. Bassett Furniture Industries, Incorporated was founded in 1902 and is based in Bassett, Virginia.