Analyzing Hooker Furnishings (NASDAQ:HOFT) & Legacy Housing (NASDAQ:LEGH)
by Tristan Rich · The Markets DailyLegacy Housing (NASDAQ:LEGH – Get Free Report) and Hooker Furnishings (NASDAQ:HOFT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Risk and Volatility
Legacy Housing has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Hooker Furnishings has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Profitability
This table compares Legacy Housing and Hooker Furnishings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Legacy Housing | 28.56% | 9.53% | 8.74% |
| Hooker Furnishings | -6.62% | 4.32% | 3.20% |
Valuation & Earnings
This table compares Legacy Housing and Hooker Furnishings”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legacy Housing | $164.57 million | 4.07 | $41.81 million | $2.17 | 13.00 |
| Hooker Furnishings | $278.14 million | 0.51 | -$26.97 million | ($1.69) | -7.85 |
Legacy Housing has higher earnings, but lower revenue than Hooker Furnishings. Hooker Furnishings is trading at a lower price-to-earnings ratio than Legacy Housing, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Legacy Housing and Hooker Furnishings, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
| Hooker Furnishings | 1 | 1 | 0 | 0 | 1.50 |
Legacy Housing presently has a consensus price target of $21.00, indicating a potential downside of 25.53%. Given Legacy Housing’s stronger consensus rating and higher possible upside, equities analysts plainly believe Legacy Housing is more favorable than Hooker Furnishings.
Insider & Institutional Ownership
89.3% of Legacy Housing shares are held by institutional investors. Comparatively, 73.6% of Hooker Furnishings shares are held by institutional investors. 30.1% of Legacy Housing shares are held by company insiders. Comparatively, 2.7% of Hooker Furnishings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Legacy Housing beats Hooker Furnishings on 11 of the 13 factors compared between the two stocks.
About Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
About Hooker Furnishings
Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture. It operates in three segments: Hooker Branded, Home Meridian, and Domestic Upholstery. The Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand. The Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and imported leather motion upholstery under the Prime Resources International brand. This segment also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name. The Domestic Upholstery segment offers motion and stationary leather furniture under the Bradington-Young brand; chairs, sofas, sectionals, recliners, and a variety of accent upholstery pieces under the HF Custom brand; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. This segment also designs and manufactures outdoor furniture under the Sunset West brand. The company supplies upholstered seating and casegoods to upscale senior living and assisted living facilities through designers, design firms, industry dealers, and distributors under the H Contract brand; and interior designer products under the Lifestyle Brands name; and lighting, accessories, and home décor products under the BOBO Intriguing Objects brand. It sells home furnishing products through retailers, such as independent furniture stores, department stores, mass merchants, national chains, catalog merchants, interior designers, and e-commerce retailers primarily in North America. Hooker Furnishings Corporation was incorporated in 1924 and is headquartered in Martinsville, Virginia.