Head-To-Head Analysis: American Woodmark (NASDAQ:AMWD) & Leggett & Platt (NYSE:LEG)

Leggett & Platt (NYSE:LEG) and American Woodmark (NASDAQ:AMWD) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Valuation & Earnings

This table compares Leggett & Platt and American Woodmark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leggett & Platt	$4.31 billion	0.32	-$511.50 million	($3.74)	-2.69
American Woodmark	$1.71 billion	0.47	$99.46 million	$6.48	8.57

American Woodmark has lower revenue, but higher earnings than Leggett & Platt. Leggett & Platt is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Leggett & Platt has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, American Woodmark has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Leggett & Platt and American Woodmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leggett & Platt	-11.89%	20.46%	3.88%
American Woodmark	5.82%	11.09%	6.35%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Leggett & Platt and American Woodmark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leggett & Platt	0	3	0	0	2.00
American Woodmark	1	1	2	0	2.25

Leggett & Platt currently has a consensus target price of $9.67, indicating a potential downside of 3.96%. American Woodmark has a consensus target price of $83.33, indicating a potential upside of 50.07%. Given American Woodmark’s stronger consensus rating and higher possible upside, analysts clearly believe American Woodmark is more favorable than Leggett & Platt.

Institutional & Insider Ownership

64.2% of Leggett & Platt shares are owned by institutional investors. Comparatively, 95.5% of American Woodmark shares are owned by institutional investors. 2.1% of Leggett & Platt shares are owned by insiders. Comparatively, 1.7% of American Woodmark shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

American Woodmark beats Leggett & Platt on 11 of the 14 factors compared between the two stocks.

About Leggett & Platt

Leggett & Platt, Inc. engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The Bedding Products segment supplies products and components for the home, including mattress springs and specialty foam, as well as adjustable beds, bedding machinery, steel rod, and drawn wire. The Specialized Products segment supplies titanium, nickel, and stainless-steel tubing for the aerospace industry, and serves the construction market with its hydraulic cylinders group. The Flooring, Furniture & Textile Products segment produces an extensive line of components and engineered systems for office, residential, and contract furniture manufacturers. The company was founded by J. P. Products and C. B. Platt in 1883 and is headquartered in Carthage, MO.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.