Sleep Number (NASDAQ:SNBR) and MillerKnoll (NASDAQ:MLKN) Head to Head Analysis

Sleep Number (NASDAQ:SNBR) and MillerKnoll (NASDAQ:MLKN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

85.7% of Sleep Number shares are owned by institutional investors. Comparatively, 87.5% of MillerKnoll shares are owned by institutional investors. 7.5% of Sleep Number shares are owned by insiders. Comparatively, 5.5% of MillerKnoll 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.

Profitability

This table compares Sleep Number and MillerKnoll’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-2.72%	N/A	-4.65%
MillerKnoll	-0.41%	10.96%	3.56%

Risk and Volatility

Sleep Number has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, MillerKnoll has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sleep Number and MillerKnoll”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.68 billion	0.10	-$20.33 million	($1.82)	-3.91
MillerKnoll	$3.76 billion	0.32	-$36.90 million	($0.25)	-71.28

Sleep Number has higher earnings, but lower revenue than MillerKnoll. MillerKnoll is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sleep Number and MillerKnoll, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	0	2	0	0	2.00
MillerKnoll	0	3	0	0	2.00

Sleep Number currently has a consensus price target of $8.33, suggesting a potential upside of 17.04%. Given Sleep Number’s higher probable upside, equities research analysts clearly believe Sleep Number is more favorable than MillerKnoll.

Summary

MillerKnoll beats Sleep Number on 7 of the 12 factors compared between the two stocks.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

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.