Hooker Furnishings (NASDAQ:HOFT) & Somnigroup International (NYSE:SGI) Critical Contrast

Somnigroup International (NYSE:SGI) and Hooker Furnishings (NASDAQ:HOFT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Profitability

This table compares Somnigroup International and Hooker Furnishings’ 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%
Hooker Furnishings	-7.90%	1.61%	1.17%

Institutional & Insider Ownership

99.9% of Somnigroup International shares are held by institutional investors. Comparatively, 73.6% of Hooker Furnishings shares are held by institutional investors. 4.0% of Somnigroup International shares are held by insiders. Comparatively, 2.7% of Hooker Furnishings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Somnigroup International and Hooker Furnishings”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Somnigroup International	$7.48 billion	1.80	$384.10 million	$2.50	25.66
Hooker Furnishings	$278.14 million	0.55	-$26.97 million	($2.15)	-6.66

Somnigroup International has higher revenue and earnings than Hooker Furnishings. Hooker Furnishings is trading at a lower price-to-earnings ratio than Somnigroup International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Somnigroup International and Hooker Furnishings, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Somnigroup International	1	2	7	0	2.60
Hooker Furnishings	1	1	0	0	1.50

Somnigroup International currently has a consensus price target of $94.50, indicating a potential upside of 47.33%. Given Somnigroup International’s stronger consensus rating and higher possible upside, analysts plainly believe Somnigroup International is more favorable than Hooker Furnishings.

Dividends

Somnigroup International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Hooker Furnishings pays an annual dividend of $0.46 per share and has a dividend yield of 3.2%. Somnigroup International pays out 27.2% of its earnings in the form of a dividend. Hooker Furnishings pays out -21.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hooker Furnishings has raised its dividend for 9 consecutive years. Hooker Furnishings is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Somnigroup International has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Hooker Furnishings has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Somnigroup International beats Hooker Furnishings on 14 of the 17 factors compared between the two stocks.

About Somnigroup International

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.

About Hooker Furnishings

Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture. It operates in three segments: Hooker Branded, Home Meridian, and Domestic Upholstery. The Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand. The Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and imported leather motion upholstery under the Prime Resources International brand. This segment also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name. The Domestic Upholstery segment offers motion and stationary leather furniture under the Bradington-Young brand; chairs, sofas, sectionals, recliners, and a variety of accent upholstery pieces under the HF Custom brand; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. This segment also designs and manufactures outdoor furniture under the Sunset West brand. The company supplies upholstered seating and casegoods to upscale senior living and assisted living facilities through designers, design firms, industry dealers, and distributors under the H Contract brand; and interior designer products under the Lifestyle Brands name; and lighting, accessories, and home décor products under the BOBO Intriguing Objects brand. It sells home furnishing products through retailers, such as independent furniture stores, department stores, mass merchants, national chains, catalog merchants, interior designers, and e-commerce retailers primarily in North America. Hooker Furnishings Corporation was incorporated in 1924 and is headquartered in Martinsville, Virginia.