Aterian (NASDAQ:ATER – Get Free Report) and Bassett Furniture Industries (NASDAQ:BSET – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Volatility & Risk
Aterian has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Earnings and Valuation
This table compares Aterian and Bassett Furniture Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aterian | $68.97 million | 0.09 | -$18.98 million | ($1.99) | -0.33 |
| Bassett Furniture Industries | $335.28 million | 0.47 | $6.10 million | $0.64 | 28.41 |
Bassett Furniture Industries has higher revenue and earnings than Aterian. Aterian 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Aterian and Bassett Furniture Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
| Bassett Furniture Industries | 0 | 2 | 0 | 1 | 2.67 |
Profitability
This table compares Aterian and Bassett Furniture Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aterian | -49.30% | -92.04% | -47.83% |
| Bassett Furniture Industries | 1.65% | 3.56% | 1.83% |
Insider and Institutional Ownership
7.0% of Aterian shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 19.5% of Aterian shares are owned by insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Bassett Furniture Industries beats Aterian on 11 of the 13 factors compared between the two stocks.
About Aterian
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.
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.
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