La-Z-Boy (NYSE:LZB – Get Free Report) and Fenbo (NASDAQ:FEBO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Insider & Institutional Ownership
99.6% of La-Z-Boy shares are held by institutional investors. Comparatively, 0.0% of Fenbo shares are held by institutional investors. 3.1% of La-Z-Boy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares La-Z-Boy and Fenbo”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La-Z-Boy | $2.13 billion | 0.62 | $101.99 million | $1.97 | 16.80 |
| Fenbo | $10.90 million | 0.74 | -$1.37 million | N/A | N/A |
La-Z-Boy has higher revenue and earnings than Fenbo.
Analyst Recommendations
This is a summary of current ratings and price targets for La-Z-Boy and Fenbo, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
| Fenbo | 1 | 0 | 0 | 0 | 1.00 |
La-Z-Boy currently has a consensus price target of $39.50, indicating a potential upside of 19.36%. Given La-Z-Boy’s stronger consensus rating and higher possible upside, analysts clearly believe La-Z-Boy is more favorable than Fenbo.
Profitability
This table compares La-Z-Boy and Fenbo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La-Z-Boy | 3.86% | 11.79% | 6.12% |
| Fenbo | N/A | N/A | N/A |
Volatility & Risk
La-Z-Boy has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Fenbo has a beta of -1.63, meaning that its stock price is 263% less volatile than the S&P 500.
Summary
La-Z-Boy beats Fenbo on 11 of the 12 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 Fenbo
Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.
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