Sony (NYSE:SONY – Get Free Report) and Bassett Furniture Industries (NASDAQ:BSET – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Valuation and Earnings
This table compares Sony 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 | |
| Sony | $82.90 billion | 1.88 | -$2.16 billion | $1.12 | 23.54 |
| Bassett Furniture Industries | $335.60 million | 0.57 | $6.10 million | $0.79 | 27.83 |
Bassett Furniture Industries has lower revenue, but higher earnings than Sony. Sony 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.
Risk & Volatility
Sony has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Insider and Institutional Ownership
14.1% of Sony shares are held by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are held by institutional investors. 7.0% of Sony shares are held by company insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Sony and Bassett Furniture Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sony | -1.54% | 14.20% | 7.69% |
| Bassett Furniture Industries | 2.02% | 4.36% | 2.26% |
Analyst Ratings
This is a summary of current recommendations and price targets for Sony and Bassett Furniture Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sony | 0 | 3 | 2 | 0 | 2.40 |
| Bassett Furniture Industries | 0 | 1 | 1 | 1 | 3.00 |
Sony currently has a consensus target price of $26.00, indicating a potential downside of 1.39%. Given Sony’s higher possible upside, analysts clearly believe Sony is more favorable than Bassett Furniture Industries.
Dividends
Sony pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. Sony pays out 13.4% of its earnings in the form of a dividend. 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. 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.
About Sony
Sony Group Corporation is a Japan-based global entertainment and technology company, founded in Tokyo in 1946 by Masaru Ibuka and Akio Morita. Initially known as Tokyo Tsushin Kogyo, the company adopted the name Sony in 1958. Sony’s businesses include video games and network services through PlayStation; music recording and publishing; film and television production and distribution; consumer electronics, including televisions and cameras; and imaging and sensing technologies, including image sensors.
About Bassett Furniture Industries
Bassett Furniture Industries, Incorporated is a home furnishings company headquartered in Bassett, Virginia. Founded in 1902, the company has a long history in the furniture industry and is known for offering products designed for residential interiors. Bassett’s product portfolio includes upholstered furniture, casegoods, bedroom furniture, dining furniture, occasional tables, mattresses, lighting, rugs, accessories and outdoor furnishings. The company offers furniture through its Bassett Home Furnishings retail stores, online channels and a wholesale network serving independent furniture retailers and other customers.
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