Man Wah (OTCMKTS:MAWHY) versus Sleep Number (NASDAQ:SNBR) Financial Review

Sleep Number (NASDAQ:SNBR) and Man Wah (OTCMKTS:MAWHY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

85.7% of Sleep Number shares are held by institutional investors. 7.5% of Sleep Number shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Sleep Number has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Man Wah has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sleep Number and Man Wah”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.68 billion	0.15	-$20.33 million	($1.82)	-5.96
Man Wah	$2.17 billion	0.97	$264.63 million	N/A	N/A

Man Wah has higher revenue and earnings than Sleep Number.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-2.72%	N/A	-4.65%
Man Wah	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Sleep Number and Man Wah, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	0	2	0	0	2.00
Man Wah	0	0	0	0	0.00

Sleep Number currently has a consensus target price of $8.33, suggesting a potential downside of 23.12%. Given Sleep Number’s stronger consensus rating and higher probable upside, research analysts plainly believe Sleep Number is more favorable than Man Wah.

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.

About Man Wah

Man Wah Holdings Limited, an investment holding company, engages in the manufacture, wholesale, trading, and distribution of sofas and ancillary products in the People's Republic of China, North America, Europe, and internationally. The company operates through Sofa and Ancillary Products, Other Products, Other Business, and Home Group Business segments. It offers mattresses, smart furniture spare parts, and metal mechanism for recliners. The company is also involved in the production and sale of chairs and other products to railways, cinema chains, airlines, yachts, private clubs and other commercial customers; advertising and marketing of home furnishing products; property investment business; operation, leasing, and management of furniture malls; manufacturing and trading of bedding products, other furniture, and furniture components, as well as foam products; and research and production of smart drive machines and electric regulators. In addition, it offers property management, development, and leasing services; offshore sales, business consultancy, and back-office support services; business management, advertising, and design services; and marketing, logistics, and warehousing services. The company also operates hotel; and sells residential properties. The company was founded in 1992 and is based in Fo Tan, Hong Kong. Man Wah Holdings Limited is a subsidiary of Man Wah Investments Limited.