Leggett & Platt (NYSE:LEG) and Natuzzi, S.p.A (NYSE:NTZ) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Risk & Volatility
Leggett & Platt has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Natuzzi, S.p.A has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Leggett & Platt and Natuzzi, S.p.A, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Leggett & Platt||0||2||4||0||2.67|
Leggett & Platt presently has a consensus price target of $45.60, indicating a potential upside of 19.03%. Given Leggett & Platt’s higher probable upside, equities analysts plainly believe Leggett & Platt is more favorable than Natuzzi, S.p.A.
Leggett & Platt pays an annual dividend of $1.52 per share and has a dividend yield of 4.0%. Natuzzi, S.p.A does not pay a dividend. Leggett & Platt pays out 61.8% of its earnings in the form of a dividend. Leggett & Platt has raised its dividend for 47 consecutive years.
This table compares Leggett & Platt and Natuzzi, S.p.A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Leggett & Platt||6.87%||28.37%||9.20%|
Valuation and Earnings
This table compares Leggett & Platt and Natuzzi, S.p.A’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Leggett & Platt||$3.94 billion||1.27||$292.60 million||$2.46||15.57|
|Natuzzi, S.p.A||$529.49 million||0.10||-$35.49 million||N/A||N/A|
Leggett & Platt has higher revenue and earnings than Natuzzi, S.p.A.
Institutional & Insider Ownership
75.6% of Leggett & Platt shares are held by institutional investors. Comparatively, 16.5% of Natuzzi, S.p.A shares are held by institutional investors. 1.5% of Leggett & Platt shares are held by company insiders. Comparatively, 0.6% of Natuzzi, S.p.A shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Leggett & Platt beats Natuzzi, S.p.A on 14 of the 15 factors compared between the two stocks.
Leggett & Platt Company Profile
Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through four segments: Residential Products, Furniture Products, Industrial Products, and Specialized Products. The Residential Products segment offers innersprings, wire forms, and machines to shape wire into various types of springs; industrial sewing/finishing machines, conveyor lines, mattress packaging, and glue-drying equipment, as well as quilting machines; and structural fabrics, carpet cushions, and geo components. It serves manufacturers of finished bedding, upholstered furniture, packaging, filtration, and draperies; retailers and distributors of carpet cushions; and contractors, landscapers, road construction companies, and government agencies using geo components. The Furniture Products segment offers molded plywood components; bases, columns, back rests, control devices, and casters and frames; private-label finished furniture; beds and bed frames; adjustable beds; and steel mechanisms and hardware, and springs and seat suspensions. It serves upholstered and office furniture manufacturers; department stores and big box retailers; e-commerce retailers; and mattress and furniture retailers. The Industrial Products segment offers drawn wires, bedding and furniture components, automotive seat suspension systems, and steel rods. It serves packaging and baling companies, mechanical spring manufacturers, and wire distributors. The Specialized Products segment offers mechanical and pneumatic lumbar support and massage systems, seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless steel tubing, formed tube, and tube assemblies; and engineered hydraulic cylinders. It serves automobile and mobile equipment OEMs, and aerospace suppliers. The company sells its products through sales representatives and distributors. Leggett & Platt, Incorporated was founded in 1883 and is headquartered in Carthage, Missouri.
Natuzzi, S.p.A Company Profile
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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