Comparing Bassett Furniture Industries (NASDAQ:BSET) & Zepp Health (NYSE:ZEPP)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bassett Furniture Industries and Zepp Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bassett Furniture Industries	0	1	1	1	3.00
Zepp Health	1	0	1	0	2.00

Zepp Health has a consensus target price of $53.01, indicating a potential upside of 2,156.70%. Given Zepp Health’s higher possible upside, analysts plainly believe Zepp Health is more favorable than Bassett Furniture Industries.

Dividends

Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Zepp Health pays an annual dividend of $0.08 per share and has a dividend yield of 3.4%. Bassett Furniture Industries pays out 101.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Zepp Health pays out -2.9% of its earnings in the form of a dividend. Bassett Furniture Industries has raised 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 Bassett Furniture Industries and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bassett Furniture Industries	2.02%	4.36%	2.26%
Zepp Health	-15.78%	-19.64%	-7.18%

Earnings & Valuation

This table compares Bassett Furniture Industries and Zepp Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bassett Furniture Industries	$335.28 million	0.56	$6.10 million	$0.79	27.32
Zepp Health	$276.03 million	0.12	-$40.07 million	($2.75)	-0.85

Bassett Furniture Industries has higher revenue and earnings than Zepp Health. Zepp Health 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.

Institutional and Insider Ownership

54.4% of Bassett Furniture Industries shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 7.3% of Bassett Furniture Industries shares are held by company insiders. Comparatively, 36.0% of Zepp Health 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.

Risk & Volatility

Bassett Furniture Industries has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Summary

Bassett Furniture Industries beats Zepp Health on 13 of the 17 factors compared between the two stocks.

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.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.