Reviewing La-Z-Boy (LZB) and Its Rivals

La-Z-Boy (NYSE: LZB) is one of 12 publicly-traded companies in the “Household furniture” industry, but how does it weigh in compared to its rivals? We will compare La-Z-Boy to related businesses based on the strength of its valuation, institutional ownership, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

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This table compares La-Z-Boy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
La-Z-Boy 4.74% 13.96% 9.53%
La-Z-Boy Competitors 3.42% 45.05% 7.01%

Volatility and Risk

La-Z-Boy has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, La-Z-Boy’s rivals have a beta of 0.49, indicating that their average share price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

88.6% of La-Z-Boy shares are held by institutional investors. Comparatively, 60.6% of shares of all “Household furniture” companies are held by institutional investors. 3.2% of La-Z-Boy shares are held by insiders. Comparatively, 7.0% of shares of all “Household furniture” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares La-Z-Boy and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
La-Z-Boy $1.52 billion $85.92 million 16.88
La-Z-Boy Competitors $1.21 billion $64.25 million 17.80

La-Z-Boy has higher revenue and earnings than its rivals. La-Z-Boy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

La-Z-Boy pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. La-Z-Boy pays out 27.7% of its earnings in the form of a dividend. As a group, “Household furniture” companies pay a dividend yield of 2.7% and pay out 45.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for La-Z-Boy and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
La-Z-Boy 0 2 1 0 2.33
La-Z-Boy Competitors 44 212 252 17 2.46

La-Z-Boy presently has a consensus target price of $33.00, indicating a potential upside of 13.01%. As a group, “Household furniture” companies have a potential upside of 25.39%. Given La-Z-Boy’s rivals stronger consensus rating and higher possible upside, analysts plainly believe La-Z-Boy has less favorable growth aspects than its rivals.

Summary

La-Z-Boy rivals beat La-Z-Boy on 8 of the 15 factors compared.

La-Z-Boy Company Profile

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company also imports, distributes and retails accessories and casegoods (wood) furniture products. The Company’s segments include the Upholstery segment, the Casegoods segment and the Retail segment. The Company is the producer of reclining chairs and manufacturer/distributor of residential furniture in the United States. The Company sells its products, primarily in the United States and Canada, as well as internationally, to furniture retailers and directly to consumers through stores that it owns and operates. The Company has a network of approximately 340 La-Z-Boy Furniture Galleries stores and over 560 Comfort Studio locations. The Company owns approximately 120 of the La-Z-Boy Furniture Galleries stores. The Company’s other brands include England, Kincaid, American Drew and Hammary.

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