Comparing Nova Lifestyle (NASDAQ:NVFY) & MasterBrand (NYSE:MBC)

Nova Lifestyle (NASDAQ:NVFY) and MasterBrand (NYSE:MBC) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

27.2% of Nova Lifestyle shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 3.3% of Nova Lifestyle shares are owned by insiders. Comparatively, 1.4% of MasterBrand shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nova Lifestyle and MasterBrand”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova Lifestyle	$9.69 million	3.24	-$5.56 million	($4.50)	-0.51
MasterBrand	$2.70 billion	0.56	$125.90 million	$0.78	15.25

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nova Lifestyle and MasterBrand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova Lifestyle	0	0	0	0	0.00
MasterBrand	1	0	1	0	2.00

MasterBrand has a consensus price target of $15.00, indicating a potential upside of 26.10%. Given MasterBrand’s stronger consensus rating and higher possible upside, analysts plainly believe MasterBrand is more favorable than Nova Lifestyle.

Risk & Volatility

Nova Lifestyle has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Nova Lifestyle and MasterBrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nova Lifestyle	-44.63%	-196.13%	-54.28%
MasterBrand	3.74%	12.60%	5.75%

Summary

MasterBrand beats Nova Lifestyle on 12 of the 14 factors compared between the two stocks.

About Nova Lifestyle

Nova LifeStyle, Inc., through its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based furniture pieces for the living, dining, and bedrooms, as well as home offices. Its products include sofas, chairs, dining tables, beds, entertainment consoles, cabinets, and cupboards. The company also provides physiotherapeutic jade mats for use in therapy clinic, hospitality, and real estate projects. It distributes its products under the Nova LifeStyle, Diamond Sofa, and Nova Living brand directly, as well as through internet sales and online marketing campaigns, and participation in exhibitions and trade shows primarily to furniture distributors and retailers. The company was formerly known as Stevens Resources, Inc. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.

About MasterBrand

MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.