La-Z-Boy (NYSE:LZB – Get Free Report) and Man Wah (OTCMKTS:MAWHY – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Valuation & Earnings
This table compares La-Z-Boy and Man Wah”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
La-Z-Boy | $2.11 billion | 0.67 | $99.56 million | $2.19 | 15.77 |
Man Wah | $2.17 billion | 0.97 | $264.63 million | N/A | N/A |
Dividends
La-Z-Boy pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Man Wah pays an annual dividend of $0.49 per share and has a dividend yield of 4.5%. La-Z-Boy pays out 40.2% of its earnings in the form of a dividend. La-Z-Boy has increased its dividend for 4 consecutive years.
Profitability
This table compares La-Z-Boy and Man Wah’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
La-Z-Boy | 4.35% | 11.34% | 6.03% |
Man Wah | N/A | N/A | N/A |
Institutional & Insider Ownership
99.6% of La-Z-Boy shares are held by institutional investors. 2.7% of La-Z-Boy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
La-Z-Boy has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Man Wah has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for La-Z-Boy and Man Wah, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
La-Z-Boy | 1 | 0 | 1 | 0 | 2.00 |
Man Wah | 0 | 0 | 0 | 0 | 0.00 |
La-Z-Boy presently has a consensus price target of $46.00, suggesting a potential upside of 33.16%. Given La-Z-Boy’s stronger consensus rating and higher possible upside, equities analysts clearly believe La-Z-Boy is more favorable than Man Wah.
Summary
La-Z-Boy beats Man Wah on 10 of the 15 factors compared between the two stocks.
About La-Z-Boy
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.
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.
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