Critical Survey: MillerKnoll (NASDAQ:MLKN) versus Bassett Furniture Industries (NASDAQ:BSET)

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

Dividends

MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 4.3%. Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 5.1%. MillerKnoll pays out -133.9% 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. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MillerKnoll	-0.41%	10.96%	3.56%
Bassett Furniture Industries	0.76%	1.48%	0.74%

Insider & Institutional Ownership

87.5% of MillerKnoll shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 5.5% of MillerKnoll shares are owned by insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MillerKnoll 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
MillerKnoll	$3.67 billion	0.33	-$36.90 million	($0.56)	-31.39
Bassett Furniture Industries	$329.92 million	0.41	-$9.69 million	$0.29	53.62

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

MillerKnoll has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for MillerKnoll and Bassett Furniture Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MillerKnoll	0	3	0	0	2.00
Bassett Furniture Industries	0	1	0	0	2.00

Summary

Bassett Furniture Industries beats MillerKnoll on 8 of the 14 factors compared between the two stocks.

About MillerKnoll

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. It operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail. The company also provides seating products, furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. It offers its products under the MillerKnoll, Herman Miller, Herman Miller Circled Symbolic M, Knoll, Maharam, Geiger, Design Within Reach, DWR, HAY, NaughtOne, Nemschoff, Aeron, Mirra, Embody, Setu, Sayl, Cosm, Caper, Eames, Knoll, KnollExtra, Knoll Luxe, KnollStudio, KnollTextiles, Edelman Leather, Spinneybeck Leather, Generation by Knoll, Regeneration by Knoll, MultiGeneration by Knoll, Remix, Holly Hunt, Vladimir Kagan, Muuto, Barcelona, and Womb names. The company offers its products through independent contract furniture dealers, direct contract sales, e-commerce websites, and wholesale and retail stores. Its products are used in institutional, health/science, and residential and other environments, and industrial and educational settings, as well as transportation terminals. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.

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.