Comparing Bassett Furniture Industries (BSET) & Its Peers

Bassett Furniture Industries (NASDAQ:BSET) is one of 150 public companies in the “Household Durables” industry, but how does it weigh in compared to its competitors? We will compare Bassett Furniture Industries to similar businesses based on the strength of its dividends, risk, valuation, profitability, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares Bassett Furniture Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bassett Furniture Industries	2.02%	4.36%	2.26%
Bassett Furniture Industries Competitors	-2.55%	-17.08%	1.25%

Insider & Institutional Ownership

54.4% of Bassett Furniture Industries shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 7.3% of Bassett Furniture Industries shares are owned by company insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Bassett Furniture Industries has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries’ competitors have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Bassett Furniture Industries and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bassett Furniture Industries	0	1	1	1	3.00
Bassett Furniture Industries Competitors	1819	7453	8180	317	2.39

As a group, “Household Durables” companies have a potential upside of 45.53%. Given Bassett Furniture Industries’ competitors higher possible upside, analysts plainly believe Bassett Furniture Industries has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Bassett Furniture Industries and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bassett Furniture Industries	$335.28 million	$6.10 million	27.33
Bassett Furniture Industries Competitors	$5.27 billion	$310.98 million	8.84

Bassett Furniture Industries’ competitors have higher revenue and earnings than Bassett Furniture Industries. Bassett Furniture Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Bassett Furniture Industries pays out 101.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Bassett Furniture Industries has increased its dividend for 4 consecutive years. Bassett Furniture Industries lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Bassett Furniture Industries competitors beat Bassett Furniture Industries on 8 of the 15 factors compared.

Bassett Furniture Industries Company Profile

Bassett Furniture Industries, Inc. designs, manufactures, sources and sells home furnishings under the Bassett name. Its products include upholstered furniture, living room and bedroom furnishings, dining furniture and accessories, with options for customized designs and finishes. Founded in 1902 in Bassett, Virginia, the company has a long history in American furniture making. Its business includes wholesale operations that supply furniture to retailers and a retail network that sells directly to consumers through company-owned and independently operated stores, as well as online.