Critical Analysis: Somnigroup International (SGI) & Its Rivals

Somnigroup International (NYSE:SGI) is one of 149 publicly-traded companies in the “Household Durables” industry, but how does it compare to its competitors? We will compare Somnigroup International to related businesses based on the strength of its valuation, profitability, earnings, institutional ownership, analyst recommendations, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Somnigroup International and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Somnigroup International	1	2	7	0	2.60
Somnigroup International Competitors	1734	7280	8056	301	2.40

Somnigroup International presently has a consensus price target of $94.50, indicating a potential upside of 51.43%. As a group, “Household Durables” companies have a potential upside of 46.77%. Given Somnigroup International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Somnigroup International is more favorable than its competitors.

Risk and Volatility

Somnigroup International has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Somnigroup International’s competitors have a beta of 1.74, suggesting that their average share price is 74% more volatile than the S&P 500.

Earnings and Valuation

This table compares Somnigroup International and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Somnigroup International	$7.48 billion	$384.10 million	24.96
Somnigroup International Competitors	$127.77 billion	$322.40 million	14.66

Somnigroup International’s competitors have higher revenue, but lower earnings than Somnigroup International. Somnigroup International is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

99.9% of Somnigroup International shares are held by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are held by institutional investors. 4.0% of Somnigroup International shares are held by company insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Somnigroup International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Somnigroup International	7.00%	19.32%	5.22%
Somnigroup International Competitors	-21.29%	-17.54%	1.12%

Dividends

Somnigroup International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Somnigroup International pays out 27.2% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.4% and pay out 33.1% of their earnings in the form of a dividend.

Summary

Somnigroup International beats its competitors on 10 of the 15 factors compared.

Somnigroup International Company Profile

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare. It also operates a portfolio of retail brands, including Tempur-Pedic retail stores, Sleep Outfitters, Sleep Solutions Outlet, Dreams, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. Somnigroup International Inc. was founded in 1846 and is based in Lexington, Kentucky.