American Woodmark (NASDAQ:AMWD) and HomesToLife (NASDAQ:HTLM) Critical Analysis

American Woodmark (NASDAQ:AMWD) and HomesToLife (NASDAQ:HTLM) 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 analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Earnings & Valuation

This table compares American Woodmark and HomesToLife”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Woodmark	$1.65 billion	0.55	$99.46 million	$5.59	11.21
HomesToLife	$4.17 million	11.03	-$1.67 million	$0.01	313.00

American Woodmark has higher revenue and earnings than HomesToLife. American Woodmark is trading at a lower price-to-earnings ratio than HomesToLife, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Woodmark and HomesToLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Woodmark	5.11%	9.43%	5.46%
HomesToLife	N/A	N/A	N/A

Institutional and Insider Ownership

95.5% of American Woodmark shares are owned by institutional investors. 1.7% of American Woodmark shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for American Woodmark and HomesToLife, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Woodmark	1	2	2	0	2.20
HomesToLife	1	0	0	0	1.00

American Woodmark currently has a consensus price target of $70.00, suggesting a potential upside of 11.72%. Given American Woodmark’s stronger consensus rating and higher possible upside, research analysts plainly believe American Woodmark is more favorable than HomesToLife.

Summary

American Woodmark beats HomesToLife on 11 of the 13 factors compared between the two stocks.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.

About HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.