Bassett Furniture Industries (NASDAQ:BSET) versus Cavco Industries (NASDAQ:CVCO) Critical Survey

Cavco Industries (NASDAQ:CVCO) and Bassett Furniture Industries (NASDAQ:BSET) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

Cavco Industries has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.89%	16.51%	12.17%
Bassett Furniture Industries	1.65%	3.56%	1.83%

Valuation and Earnings

This table compares Cavco Industries and Bassett Furniture Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.24 billion	2.00	$190.55 million	$22.98	25.45
Bassett Furniture Industries	$335.28 million	0.49	$6.10 million	$0.64	29.77

Cavco Industries has higher revenue and earnings than Bassett Furniture Industries. Cavco Industries 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cavco Industries and Bassett Furniture Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	1	2	1	1	2.40
Bassett Furniture Industries	0	1	0	2	3.33

Cavco Industries presently has a consensus target price of $700.00, indicating a potential upside of 19.71%. Given Cavco Industries’ higher possible upside, equities research analysts plainly believe Cavco Industries is more favorable than Bassett Furniture Industries.

Insider and Institutional Ownership

95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are held by institutional investors. 1.7% of Cavco Industries shares are held by company insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Cavco Industries beats Bassett Furniture Industries on 11 of the 15 factors compared between the two stocks.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

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.