Critical Survey: Maxx Sports TV (OTCMKTS:AMXX) and Sleep Number (NASDAQ:SNBR)

Maxx Sports TV (OTCMKTS:AMXX) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Insider & Institutional Ownership

85.7% of Sleep Number shares are owned by institutional investors. 39.3% of Maxx Sports TV 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Maxx Sports TV and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Maxx Sports TV	N/A	N/A	N/A
Sleep Number	-2.72%	N/A	-4.65%

Risk & Volatility

Maxx Sports TV has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Earnings & Valuation

This table compares Maxx Sports TV and Sleep Number”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maxx Sports TV	N/A	N/A	N/A	N/A	N/A
Sleep Number	$1.68 billion	0.15	-$20.33 million	($1.82)	-6.07

Maxx Sports TV has higher earnings, but lower revenue than Sleep Number.

Analyst Recommendations

This is a breakdown of recent recommendations for Maxx Sports TV and Sleep Number, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maxx Sports TV	0	0	0	0	0.00
Sleep Number	0	2	0	0	2.00

Sleep Number has a consensus target price of $8.3333, indicating a potential downside of 24.59%. Given Sleep Number’s stronger consensus rating and higher probable upside, analysts clearly believe Sleep Number is more favorable than Maxx Sports TV.

About Maxx Sports TV

Maxx Sports TV Inc. manufactures and sells workstations, tables, sit-to-stand products, and storage products in the United States. It also provides accessories, such as echo add-on panels, laminate privacy screens, and desktop power products. The company was founded in 1987 and is based in Tempe, Arizona.

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.