Head to Head Review: Leggett & Platt (NYSE:LEG) vs. Man Wah (OTCMKTS:MAWHY)

Man Wah (OTCMKTS:MAWHY) and Leggett & Platt (NYSE:LEG) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Man Wah and Leggett & Platt, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Man Wah	0	0	0	0	0.00
Leggett & Platt	1	3	0	0	1.75

Leggett & Platt has a consensus target price of $9.67, suggesting a potential upside of 3.06%. Given Leggett & Platt’s stronger consensus rating and higher possible upside, analysts clearly believe Leggett & Platt is more favorable than Man Wah.

Institutional & Insider Ownership

64.2% of Leggett & Platt shares are owned by institutional investors. 1.6% of Leggett & Platt shares are owned 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

Man Wah has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Leggett & Platt has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares Man Wah and Leggett & Platt”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Man Wah	$2.17 billion	1.08	$264.63 million	N/A	N/A
Leggett & Platt	$4.38 billion	0.29	-$511.50 million	$1.03	9.11

Man Wah has higher earnings, but lower revenue than Leggett & Platt.

Profitability

This table compares Man Wah and Leggett & Platt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Man Wah	N/A	N/A	N/A
Leggett & Platt	3.36%	19.42%	3.96%

Dividends

Man Wah pays an annual dividend of $0.49 per share and has a dividend yield of 4.0%. Leggett & Platt pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. Leggett & Platt pays out 19.4% of its earnings in the form of a dividend.

Summary

Leggett & Platt beats Man Wah on 9 of the 13 factors compared between the two stocks.

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.

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.