Sleep Number (NASDAQ:SNBR) and Natuzzi, S.p.A (NYSE:NTZ) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Sleep Number and Natuzzi, S.p.A’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%
Natuzzi, S.p.A 4.59% 18.76% 6.23%

Volatility and Risk

Sleep Number has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Natuzzi, S.p.A has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Insider and Institutional Ownership

16.5% of Natuzzi, S.p.A shares are held by institutional investors. 4.3% of Sleep Number shares are held by insiders. Comparatively, 0.6% of Natuzzi, S.p.A shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Sleep Number and Natuzzi, S.p.A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sleep Number $1.44 billion 0.85 $65.07 million $1.49 24.81
Natuzzi, S.p.A $529.49 million 0.09 -$35.49 million N/A N/A

Sleep Number has higher revenue and earnings than Natuzzi, S.p.A.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sleep Number and Natuzzi, S.p.A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sleep Number 1 3 1 0 2.00
Natuzzi, S.p.A 0 0 0 0 N/A

Sleep Number presently has a consensus price target of $33.33, indicating a potential downside of 9.84%. Given Sleep Number’s higher possible upside, analysts plainly believe Sleep Number is more favorable than Natuzzi, S.p.A.

Summary

Sleep Number beats Natuzzi, S.p.A on 10 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 Natuzzi, S.p.A

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. The company operates through Natuzzi Brand and Softaly/Private Label segments. Its products primarily include stationary furniture, such as sofas, loveseats, and armchairs; sectional furniture; motion furniture; sofa beds; occasional chairs, including recliners and massage chairs; and furnishings and accessories for the living room and beds, bed linens, and bedroom furnishings. The company sells its products primarily under the Natuzzi Italia, Natuzzi Re-vive, Natuzzi Editions, and Softaly brand names. It also sells its leather-upholstered products through franchised Divani&Divani by Natuzzi, and Natuzzi Italia furniture stores. As of March 31, 2018, the company operated 205 Natuzzi Italia stores, 147 Natuzzi Editions stores, and 79 Divani&Divani by Natuzzi stores. The company was formerly known as Industrie Natuzzi S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi S.p.A. was founded in 1959 and is headquartered in Santeramo in Colle, Italy.

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