Sleep Number (NASDAQ: SNBR) and Interface (NASDAQ:TILE) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
This table compares Sleep Number and Interface’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Sleep Number and Interface’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sleep Number||$1.44 billion||0.92||$65.07 million||$1.55||22.29|
|Interface||$996.44 million||1.49||$53.24 million||$0.85||29.35|
Sleep Number has higher revenue and earnings than Interface. Sleep Number is trading at a lower price-to-earnings ratio than Interface, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
96.1% of Interface shares are owned by institutional investors. 4.0% of Sleep Number shares are owned by company insiders. Comparatively, 1.9% of Interface shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Interface pays an annual dividend of $0.26 per share and has a dividend yield of 1.0%. Sleep Number does not pay a dividend. Interface pays out 30.6% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for Sleep Number and Interface, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sleep Number presently has a consensus target price of $35.60, suggesting a potential upside of 3.04%. Interface has a consensus target price of $25.50, suggesting a potential upside of 2.20%. Given Sleep Number’s higher probable upside, equities research analysts clearly believe Sleep Number is more favorable than Interface.
Volatility and Risk
Sleep Number has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Interface has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Sleep Number beats Interface on 9 of the 16 factors compared between the two stocks.
Sleep Number Company Profile
Sleep Number Corporation, formerly Select Comfort Corporation, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep. The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products. It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.
Interface Company Profile
Interface Inc. is engaged in design, production and sale of modular carpet, also known as carpet tile. As of January 1, 2017, the Company marketed its modular carpets in over 110 countries under the brand names Interface and FLOR. The Company operates through three segments: Americas, Europe and Asia-Pacific. The Company distributes its products through two primary channels, including direct sales to end users and indirect sales through independent contractors or distributors. The Company sells an antimicrobial chemical compound under the trademark Intersept that the Company incorporates in all of its modular carpet products. It also sells its TacTiles carpet tile installation system, along with a range of traditional adhesives and products for carpet installation and maintenance that are manufactured by a third party. It also provides turnkey project management services for national accounts and other customers through its InterfaceSERVICES business.
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