a.k.a. Brands (NYSE:AKA) versus Haverty Furniture Companies (NYSE:HVT) Financial Analysis

Haverty Furniture Companies (NYSE:HVT) and a.k.a. Brands (NYSE:AKA) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Volatility and Risk

Haverty Furniture Companies has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Haverty Furniture Companies and a.k.a. Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haverty Furniture Companies	0	2	0	0	2.00
a.k.a. Brands	1	2	1	0	2.00

a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 80.95%. Given a.k.a. Brands’ higher possible upside, analysts clearly believe a.k.a. Brands is more favorable than Haverty Furniture Companies.

Profitability

This table compares Haverty Furniture Companies and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haverty Furniture Companies	2.93%	7.15%	3.34%
a.k.a. Brands	-4.43%	-20.93%	-5.17%

Valuation and Earnings

This table compares Haverty Furniture Companies and a.k.a. Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haverty Furniture Companies	$758.99 million	0.56	$19.73 million	$1.36	20.04
a.k.a. Brands	$600.21 million	0.19	-$31.43 million	($2.48)	-4.23

Haverty Furniture Companies has higher revenue and earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Haverty Furniture Companies, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.6% of Haverty Furniture Companies shares are owned by institutional investors. Comparatively, 55.3% of a.k.a. Brands shares are owned by institutional investors. 8.4% of Haverty Furniture Companies shares are owned by company insiders. Comparatively, 18.2% of a.k.a. Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Haverty Furniture Companies beats a.k.a. Brands on 9 of the 13 factors compared between the two stocks.

About Haverty Furniture Companies

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Tempur-Pedic, Serta, Sealy, and Stearns and Foster names. The company sells home furnishings through its retail stores, as well as through its website. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.