Critical Analysis: Bassett Furniture Industries (BSET) and Dorel Industries (DIIBF)

Bassett Furniture Industries (NASDAQ: BSET) and Dorel Industries (OTCMKTS:DIIBF) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

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This table compares Bassett Furniture Industries and Dorel Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bassett Furniture Industries $452.50 million 0.70 $18.25 million $1.58 18.70
Dorel Industries $2.58 billion 0.28 $30.58 million N/A N/A

Dorel Industries has higher revenue and earnings than Bassett Furniture Industries.

Volatility & Risk

Bassett Furniture Industries has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Bassett Furniture Industries 3.17% 8.10% 5.40%
Dorel Industries 1.19% 6.46% 3.13%

Dividends

Bassett Furniture Industries pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. Dorel Industries pays an annual dividend of $1.20 per share and has a dividend yield of 5.3%. Bassett Furniture Industries pays out 27.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Bassett Furniture Industries and Dorel Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bassett Furniture Industries 0 1 0 0 2.00
Dorel Industries 0 0 0 0 N/A

Bassett Furniture Industries presently has a consensus price target of $33.00, indicating a potential upside of 11.68%. Given Bassett Furniture Industries’ higher possible upside, equities analysts plainly believe Bassett Furniture Industries is more favorable than Dorel Industries.

Insider and Institutional Ownership

73.3% of Bassett Furniture Industries shares are held by institutional investors. Comparatively, 0.8% of Dorel Industries shares are held by institutional investors. 6.4% of Bassett Furniture Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Bassett Furniture Industries beats Dorel Industries on 8 of the 13 factors compared between the two stocks.

About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated is a manufacturer, importer and retailer of home furnishings. The Company’s segments include Wholesale, Retail – Company-owned stores and Logistical services. Its wholesale home furnishings segment is involved in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (licensee-owned stores and Company-owned stores) and independent furniture retailers. Its retail segment consists of Company-owned stores. It operates its logistical services segment through its subsidiary, Zenith Freight Lines, LLC, which provides shipping, delivery and warehousing services. Its portfolio of products includes Canopy Bed, Nightstands, Baby Bedding, Bedside Tables, Chaise Lounge, Writing Desks, Kitchen Furniture, Computer Hutch, Game Tables and Fabric Ottomans. Its range of furniture products and accessories are sold through a nation-wide network of over 90 retail stores known as Bassett Home Furnishings.

About Dorel Industries

Dorel Industries Inc is a Canada-based global consumer products company which designs, manufactures and distributes a portfolio of product brands. The Company markets its products in the United States, Europe, Latin America, Canada, and Asia. The Company operates through three segments: Dorel Juvenile, Dorel Sports and Dorel Home Furnishings. The Company’s Dorel Juvenile segment is engaged in designing, sourcing, manufacturing, distribution and retailing of children’s furniture and accessories. The Company’s Dorel Sports segment is engaged in designing, sourcing, manufacturing and distribution of recreational and leisure products and accessories. The Company’s Dorel Home Furnishings segment is engaged in designing, sourcing, manufacturing and distribution of ready-to-assemble (RTA) furniture and home furnishings. The Company’s brands include Cannondale, Schwinn, GT, Mongoose, Caloi, Quinny, Maxi-Cosi, Tiny Love, Cosco, Infanti, Voyage, Angel, Disney and Eddie Bauer.

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