Bassett Furniture Industries (NASDAQ:BSET) versus Garmin (NYSE:GRMN) Head to Head Survey

Bassett Furniture Industries (NASDAQ:BSET) and Garmin (NYSE:GRMN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Bassett Furniture Industries and Garmin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bassett Furniture Industries	0	2	0	1	2.67
Garmin	0	4	2	2	2.75

Garmin has a consensus price target of $310.17, suggesting a potential upside of 5.29%. Given Garmin’s stronger consensus rating and higher possible upside, analysts clearly believe Garmin is more favorable than Bassett Furniture Industries.

Earnings & Valuation

This table compares Bassett Furniture Industries and Garmin”s 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	0.46	$6.10 million	$0.64	27.92
Garmin	$7.25 billion	7.84	$1.66 billion	$9.70	30.37

Garmin has higher revenue and earnings than Bassett Furniture Industries. Bassett Furniture Industries is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bassett Furniture Industries and Garmin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bassett Furniture Industries	1.65%	3.56%	1.83%
Garmin	24.47%	20.95%	17.06%

Insider & Institutional Ownership

54.4% of Bassett Furniture Industries shares are held by institutional investors. Comparatively, 81.6% of Garmin shares are held by institutional investors. 7.3% of Bassett Furniture Industries shares are held by insiders. Comparatively, 14.8% of Garmin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Bassett Furniture Industries pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.4%. Bassett Furniture Industries pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Garmin pays out 43.3% of its earnings in the form of a dividend. Bassett Furniture Industries has raised its dividend for 4 consecutive years and Garmin has raised its dividend for 8 consecutive years.

Risk and Volatility

Bassett Furniture Industries has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Garmin has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Summary

Garmin beats Bassett Furniture Industries on 17 of the 18 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 Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.