Reviewing Zepp Health (NYSE:ZEPP) and Hooker Furnishings (NASDAQ:HOFT)

Hooker Furnishings (NASDAQ:HOFT) and Zepp Health (NYSE:ZEPP) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Dividends

Hooker Furnishings pays an annual dividend of $0.46 per share and has a dividend yield of 3.3%. Zepp Health pays an annual dividend of $0.08 per share and has a dividend yield of 1.8%. Hooker Furnishings pays out -21.4% of its earnings in the form of a dividend. Zepp Health pays out -2.9% 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 increased 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.

Earnings and Valuation

This table compares Hooker Furnishings and Zepp Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hooker Furnishings	$278.14 million	0.54	-$26.97 million	($2.15)	-6.48
Zepp Health	$276.03 million	0.24	-$40.07 million	($2.75)	-1.63

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

Volatility & Risk

Hooker Furnishings has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hooker Furnishings and Zepp Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hooker Furnishings	1	1	0	0	1.50
Zepp Health	1	0	1	0	2.00

Zepp Health has a consensus price target of $53.01, indicating a potential upside of 1,086.17%. Given Zepp Health’s stronger consensus rating and higher possible upside, analysts clearly believe Zepp Health is more favorable than Hooker Furnishings.

Profitability

This table compares Hooker Furnishings and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hooker Furnishings	-6.62%	4.31%	3.18%
Zepp Health	-15.78%	-19.64%	-7.18%

Insider and Institutional Ownership

73.6% of Hooker Furnishings shares are owned by institutional investors. Comparatively, 52.6% of Zepp Health shares are owned by institutional investors. 2.7% of Hooker Furnishings shares are owned by company insiders. Comparatively, 36.0% of Zepp Health shares are owned 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.

Summary

Hooker Furnishings beats Zepp Health on 11 of the 17 factors compared between the two stocks.

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.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.