Leggett & Platt (NYSE:LEG) & HomesToLife (NASDAQ:HTLM) Critical Contrast

Leggett & Platt (NYSE:LEG) and HomesToLife (NASDAQ:HTLM) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares Leggett & Platt and HomesToLife”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leggett & Platt	$4.17 billion	0.29	-$511.50 million	$1.61	5.54
HomesToLife	$4.17 million	10.99	-$1.67 million	$0.01	312.00

HomesToLife has lower revenue, but higher earnings than Leggett & Platt. Leggett & Platt is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

64.2% of Leggett & Platt shares are owned by institutional investors. 1.6% of Leggett & Platt shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Leggett & Platt and HomesToLife, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leggett & Platt	1	4	0	0	1.80
HomesToLife	1	0	0	0	1.00

Leggett & Platt currently has a consensus target price of $11.00, suggesting a potential upside of 23.25%. Given Leggett & Platt’s stronger consensus rating and higher probable upside, research analysts clearly believe Leggett & Platt is more favorable than HomesToLife.

Profitability

This table compares Leggett & Platt and HomesToLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leggett & Platt	5.38%	16.27%	3.63%
HomesToLife	N/A	N/A	N/A

Summary

Leggett & Platt beats HomesToLife on 9 of the 12 factors compared between the two stocks.

About Leggett & Platt

Leggett & Platt, Inc. engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The Bedding Products segment supplies products and components for the home, including mattress springs and specialty foam, as well as adjustable beds, bedding machinery, steel rod, and drawn wire. The Specialized Products segment supplies titanium, nickel, and stainless-steel tubing for the aerospace industry, and serves the construction market with its hydraulic cylinders group. The Flooring, Furniture & Textile Products segment produces an extensive line of components and engineered systems for office, residential, and contract furniture manufacturers. The company was founded by J. P. Products and C. B. Platt in 1883 and is headquartered in Carthage, MO.

About HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.