Reviewing Boot Barn (NYSE:BOOT) & Haverty Furniture Companies (NYSE:HVT)

Boot Barn (NYSE:BOOT) and Haverty Furniture Companies (NYSE:HVT) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

80.6% of Haverty Furniture Companies shares are held by institutional investors. 0.7% of Boot Barn shares are held by company insiders. Comparatively, 8.4% of Haverty Furniture Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Boot Barn and Haverty Furniture Companies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boot Barn	$2.42 billion	1.70	$225.88 million	$8.26	16.69
Haverty Furniture Companies	$758.99 million	0.52	$19.73 million	$1.47	17.24

Boot Barn has higher revenue and earnings than Haverty Furniture Companies. Boot Barn 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.

Risk and Volatility

Boot Barn has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Haverty Furniture Companies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Boot Barn and Haverty Furniture Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.45%	18.82%	9.98%
Haverty Furniture Companies	3.10%	6.96%	3.21%

Dividends

Boot Barn pays an annual dividend of $0.50 per share and has a dividend yield of 0.4%. Haverty Furniture Companies pays an annual dividend of $1.32 per share and has a dividend yield of 5.2%. Boot Barn pays out 6.1% of its earnings in the form of a dividend. Haverty Furniture Companies pays out 89.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Haverty Furniture Companies has raised its dividend for 4 consecutive years. Haverty Furniture Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Boot Barn and Haverty Furniture Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	2	12	0	2.86
Haverty Furniture Companies	1	1	0	0	1.50

Boot Barn presently has a consensus target price of $183.92, suggesting a potential upside of 33.38%. Given Boot Barn’s stronger consensus rating and higher possible upside, analysts plainly believe Boot Barn is more favorable than Haverty Furniture Companies.

Summary

Boot Barn beats Haverty Furniture Companies on 12 of the 17 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc. is a U.S. retailer specializing in Western and work-related footwear, apparel and accessories. It serves customers through retail stores and online sales. Its merchandise includes cowboy boots and other footwear, jeans, shirts, hats, outerwear, work clothing and safety footwear. Boot Barn sells products from third-party brands as well as private-label brands. The company serves customers across the United States and caters to Western lifestyle, workwear and outdoor customers.

About Haverty Furniture Companies

Haverty Furniture Companies, Inc. is a home furnishings retailer that sells furniture, mattresses and home accessories through its Havertys stores and online. Its merchandise includes products for living rooms, bedrooms, dining rooms and other areas of the home, with offerings from both national brands and its own private-label collections. Founded in Atlanta in 1885, the company has grown from a single furniture store into a regional retailer serving customers across parts of the southeastern and midwestern United States.