Financial Review: La-Z-Boy (LZB) vs. Kimball International (KBAL)

Kimball International (NASDAQ: KBAL) and La-Z-Boy (NYSE:LZB) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

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This is a summary of recent ratings and recommmendations for Kimball International and La-Z-Boy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball International 0 0 0 0 N/A
La-Z-Boy 0 2 1 0 2.33

La-Z-Boy has a consensus price target of $33.00, indicating a potential upside of 9.09%. Given La-Z-Boy’s higher possible upside, analysts clearly believe La-Z-Boy is more favorable than Kimball International.

Institutional and Insider Ownership

62.5% of Kimball International shares are owned by institutional investors. Comparatively, 88.6% of La-Z-Boy shares are owned by institutional investors. 2.7% of Kimball International shares are owned by company insiders. Comparatively, 3.2% of La-Z-Boy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kimball International 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
Kimball International $669.93 million 0.96 $37.50 million N/A N/A
La-Z-Boy $1.52 billion 0.94 $85.92 million $1.73 17.49

La-Z-Boy has higher revenue and earnings than Kimball International.

Dividends

Kimball International pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. 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.

Volatility & Risk

Kimball International has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Kimball International and La-Z-Boy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball International 5.41% 22.51% 13.01%
La-Z-Boy 4.74% 13.96% 9.53%

Kimball International Company Profile

Kimball International, Inc. manufactures and sells furniture products under the Kimball, National, and Kimball Hospitality brand names in the United States and internationally. The company provides office furniture, including desks, tables, seating, bookcases, and filing and storage units for federal, state, and local government offices, as well as other government related entities; and furniture solutions comprising headboards, tables, seating, vanities, and casegoods for hotel properties and mixed use developments. Its furniture solutions are used in collaborative and open work space areas, conference and meeting/huddle rooms, training rooms, private offices, learning areas, classrooms, lobby/reception areas, and dining/café areas with a mix of wood, metal, laminate, paint, fabric, solid surface, and plastic options. In addition, it offers patient room and lounge seating and casegoods for the healthcare market. The company markets and sells its products through sales representatives to end users, office furniture dealers, wholesalers, brokers, designers, purchasing companies, and catalog houses. The company was formerly known as The Jasper Corporation and changed its name to Kimball International, Inc. in July 1974. Kimball International, Inc. was incorporated in 1939 and is headquartered in Jasper, Indiana.

La-Z-Boy Company Profile

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 Upholstery, Casegoods, and Retail segments. The Upholstery segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of Comfort Studios and England custom comfort center locations, dealers, and other independent retailers. The Casegoods segment imports, markets, and distributes casegoods/wood furniture, including bedroom sets, dining room sets, entertainment centers, and occasional pieces, as well as manufactures upholstered furniture. This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brands. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 347 La-Z-Boy Furniture Galleries stores and 557 Comfort Studio locations, as well as in-store programs with 527 outlets in Kincaid and England. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. 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 based in Monroe, Michigan.

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