MasterBrand (NYSE:MBC – Get Free Report) and La-Z-Boy (NYSE:LZB – Get Free Report) 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 valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility and Risk
MasterBrand has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Insider & Institutional Ownership
87.3% of MasterBrand shares are held by institutional investors. Comparatively, 99.6% of La-Z-Boy shares are held by institutional investors. 2.0% of MasterBrand shares are held by insiders. Comparatively, 2.7% of La-Z-Boy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MasterBrand | 1 | 1 | 1 | 0 | 2.00 |
| La-Z-Boy | 1 | 1 | 1 | 0 | 2.00 |
MasterBrand presently has a consensus price target of $15.00, indicating a potential upside of 18.30%. La-Z-Boy has a consensus price target of $46.00, indicating a potential upside of 46.36%. Given La-Z-Boy’s higher possible upside, analysts clearly believe La-Z-Boy is more favorable than MasterBrand.
Valuation & Earnings
This table compares MasterBrand and La-Z-Boy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MasterBrand | $2.70 billion | 0.60 | $125.90 million | $0.72 | 17.61 |
| La-Z-Boy | $2.11 billion | 0.61 | $99.56 million | $2.19 | 14.35 |
MasterBrand has higher revenue and earnings than La-Z-Boy. La-Z-Boy is trading at a lower price-to-earnings ratio than MasterBrand, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MasterBrand and La-Z-Boy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MasterBrand | 3.37% | 11.88% | 5.28% |
| La-Z-Boy | 4.35% | 11.34% | 6.03% |
Summary
La-Z-Boy beats MasterBrand on 7 of the 12 factors compared between the two stocks.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
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.
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