Hamilton Beach Brands (NYSE:HBB – Get Free Report) and La-Z-Boy (NYSE:LZB – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Hamilton Beach Brands and La-Z-Boy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hamilton Beach Brands | 9.41% | 30.70% | 14.62% |
| La-Z-Boy | 3.86% | 11.79% | 6.12% |
Risk & Volatility
Hamilton Beach Brands has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Dividends
Institutional & Insider Ownership
50.5% of Hamilton Beach Brands shares are owned by institutional investors. Comparatively, 99.6% of La-Z-Boy shares are owned by institutional investors. 39.0% of Hamilton Beach Brands shares are owned by insiders. Comparatively, 3.1% of La-Z-Boy shares are owned by 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.
Valuation & Earnings
This table compares Hamilton Beach Brands and La-Z-Boy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hamilton Beach Brands | $606.85 million | 0.66 | $26.45 million | $4.25 | 7.06 |
| La-Z-Boy | $2.13 billion | 0.58 | $101.99 million | $1.97 | 15.59 |
La-Z-Boy has higher revenue and earnings than Hamilton Beach Brands. Hamilton Beach Brands is trading at a lower price-to-earnings ratio than La-Z-Boy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Hamilton Beach Brands and La-Z-Boy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hamilton Beach Brands | 0 | 0 | 1 | 0 | 3.00 |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
La-Z-Boy has a consensus price target of $39.50, suggesting a potential upside of 28.58%. Given La-Z-Boy’s higher probable upside, analysts clearly believe La-Z-Boy is more favorable than Hamilton Beach Brands.
Summary
La-Z-Boy beats Hamilton Beach Brands on 9 of the 17 factors compared between the two stocks.
About Hamilton Beach Brands
Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides consumer products under the Hamilton Beach and Proctor Silex brands; products under the Hamilton Beach Professional in the premium market; farm-to-table and field-to-table food processing equipment under the Weston brand; countertop appliances under the Wolf Gourmet brand; garment care products under the CHI brand; cocktail delivery system under the Bartesian brand; air purifiers under the Clorox and TrueAir brands; and water filtration systems under the Brita brand. In addition, it offers injection care management system under the Hamilton Beach Health brand; and commercial products under the Hamilton Beach Commercial and the Proctor Silex Commercial brands, as well as supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, fast food chains, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.
About La-Z-Boy
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.
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