Head to Head Contrast: Natuzzi (NYSE:NTZ) versus Bassett Furniture Industries (NASDAQ:BSET)

Natuzzi (NYSE:NTZ) and Bassett Furniture Industries (NASDAQ:BSET) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Insider and Institutional Ownership

6.1% of Natuzzi shares are held by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are held by institutional investors. 0.6% of Natuzzi shares are held by company insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Natuzzi has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Natuzzi and Bassett Furniture Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natuzzi	$345.01 million	0.11	-$16.39 million	N/A	N/A
Bassett Furniture Industries	$329.92 million	0.43	-$9.69 million	$0.29	56.34

Bassett Furniture Industries has lower revenue, but higher earnings than Natuzzi.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Natuzzi and Bassett Furniture Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natuzzi	0	0	0	0	0.00
Bassett Furniture Industries	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natuzzi	-5.66%	-29.05%	-5.45%
Bassett Furniture Industries	0.76%	1.48%	0.74%

Summary

Bassett Furniture Industries beats Natuzzi on 9 of the 10 factors compared between the two stocks.

About Natuzzi

Natuzzi S.p.A. engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores in the United States, Italy, China, Brazil, Spain, Mexico, Canada, Australia, Belgium, the United Arab Emirates, South Korea, Israel, Taiwan, the United Kingdom, and internationally. The company offers stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; home furnishing accessories, including coffee tables, lamps, rugs, and wall units; and home accessories, which include vases, mirrors, magazines racks, trays, and decorative objects. It also sells polyurethane foam and leather processing by-products. It operates Natuzzi Italia stores; Divani&Divani by Natuzzi stores; and Natuzzi Editions stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was incorporated in 1959 and is headquartered in Santeramo In Colle, Italy.

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.