Head-To-Head Review: Sleep Number (SNBR) and Nova Lifestyle (NVFY)

Sleep Number (NASDAQ:SNBR) and Nova Lifestyle (NASDAQ:NVFY) 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 dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sleep Number and Nova Lifestyle, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sleep Number 1 3 1 0 2.00
Nova Lifestyle 0 0 0 0 N/A

Sleep Number presently has a consensus price target of $33.33, indicating a potential downside of 11.63%. Given Sleep Number’s higher probable upside, research analysts plainly believe Sleep Number is more favorable than Nova Lifestyle.

Insider and Institutional Ownership

3.7% of Nova Lifestyle shares are held by institutional investors. 4.3% of Sleep Number shares are held by insiders. Comparatively, 38.9% of Nova Lifestyle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Sleep Number and Nova Lifestyle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sleep Number 3.93% 490.11% 13.00%
Nova Lifestyle 4.03% 10.29% 8.77%

Earnings and Valuation

This table compares Sleep Number and Nova Lifestyle’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sleep Number $1.44 billion 0.87 $65.07 million $1.49 25.32
Nova Lifestyle $106.49 million 0.25 $3.76 million N/A N/A

Sleep Number has higher revenue and earnings than Nova Lifestyle.

Risk and Volatility

Sleep Number has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Nova Lifestyle has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Summary

Sleep Number beats Nova Lifestyle on 8 of the 12 factors compared between the two stocks.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name. The company also offers adjustable bases under the FlextFit name; and pillows and sheets, as well as other bedding products, including mattresses, box springs, and foundations under the Sleep Number name. The company sells its products directly to consumers through retail, online, and phone, as well as through wholesale. As of December 30, 2017, it operated approximately 556 Sleep Number retail stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.

About Nova Lifestyle

Nova LifeStyle, Inc., together with its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based residential furniture for the living rooms, dining rooms, bedrooms, and home offices. Its products include sofas, chairs, dining tables, beds, entertainment consoles, cabinets, and cupboards. The company offers its products under the Diamond Sofa, Colorful World, Giorgio Mobili, and Bright Swallow brands. It sells its products through Internet sales and direct sales primarily to furniture distributors and retailers. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.

Receive News & Ratings for Sleep Number Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sleep Number and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply