Comparing Bassett Furniture Industries (NASDAQ:BSET) and Cricut (NASDAQ:CRCT)

Cricut (NASDAQ:CRCT) and Bassett Furniture Industries (NASDAQ:BSET) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cricut and Bassett Furniture Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cricut	4	1	0	1	1.67
Bassett Furniture Industries	0	1	0	2	3.33

Cricut presently has a consensus target price of $4.07, suggesting a potential downside of 25.11%. Given Cricut’s higher probable upside, research analysts clearly believe Cricut is more favorable than Bassett Furniture Industries.

Dividends

Cricut pays an annual dividend of $0.20 per share and has a dividend yield of 3.7%. Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. Cricut pays out 46.5% of its earnings in the form of a dividend. Bassett Furniture Industries pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bassett Furniture Industries has increased its dividend for 4 consecutive years. Bassett Furniture Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cricut and Bassett Furniture Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cricut	12.71%	24.57%	15.42%
Bassett Furniture Industries	1.65%	3.56%	1.83%

Volatility and Risk

Cricut has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cricut and Bassett Furniture Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cricut	$708.78 million	1.60	$76.71 million	$0.43	12.63
Bassett Furniture Industries	$335.28 million	0.49	$6.10 million	$0.64	29.47

Cricut has higher revenue and earnings than Bassett Furniture Industries. Cricut is trading at a lower price-to-earnings ratio than Bassett Furniture Industries, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

19.6% of Cricut shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 16.5% of Cricut shares are owned by company insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Cricut beats Bassett Furniture Industries on 9 of the 17 factors compared between the two stocks.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated, together with its subsidiaries, manufactures, markets, and retails home furnishings in the United States and internationally. It operates in three segments: Wholesale, Retail Company-Owned Stores, and Corporate and Other. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products, including dining, bedroom and bedding, home decorations, rugs, and outdoor furniture to a network of company-owned retail stores, licensee-owned stores, and independent retailers. The company also distributes its products through multi-line furniture stores, including Bassett galleries or design centers, as well as sells online; and engages in wood and upholstery operations. In addition, it owns and leases land, retail store properties, warehouses, and distribution centers. Bassett Furniture Industries, Incorporated was founded in 1902 and is based in Bassett, Virginia.