Financial Review: Kimball International (KBAL) versus Flexsteel Industries (FLXS)

Kimball International (NASDAQ: KBAL) and Flexsteel Industries (NASDAQ:FLXS) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

Kimball International pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Flexsteel Industries pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%.

Volatility and Risk

Kimball International has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Flexsteel Industries has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Kimball International and Flexsteel Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimball International 0 0 0 0 N/A
Flexsteel Industries 0 0 0 0 N/A

Profitability

This table compares Kimball International and Flexsteel Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimball International 5.16% 21.20% 12.35%
Flexsteel Industries 4.89% 9.19% 7.78%

Insider & Institutional Ownership

63.1% of Kimball International shares are held by institutional investors. Comparatively, 65.2% of Flexsteel Industries shares are held by institutional investors. 2.7% of Kimball International shares are held by company insiders. Comparatively, 6.0% of Flexsteel Industries shares are held 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.

Earnings and Valuation

This table compares Kimball International and Flexsteel Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimball International $669.93 million 0.90 $37.50 million N/A N/A
Flexsteel Industries $468.76 million 0.65 $23.78 million N/A N/A

Kimball International has higher revenue and earnings than Flexsteel Industries.

Summary

Kimball International beats Flexsteel Industries on 7 of the 11 factors compared between the two stocks.

About Kimball International

Kimball International, Inc. manufactures and sells furniture products under the Kimball, National, and Kimball Hospitality brand names in the United States and internationally. The company provides office furniture, including desks, tables, seating, bookcases, and filing and storage units for federal, state, and local government offices, as well as other government related entities; and furniture solutions comprising headboards, tables, seating, vanities, and casegoods for hotel properties and mixed use developments. Its furniture solutions are used in collaborative and open work space areas, conference and meeting/huddle rooms, training rooms, private offices, learning areas, classrooms, lobby/reception areas, and dining/café areas with a mix of wood, metal, laminate, paint, fabric, solid surface, and plastic options. In addition, it offers patient room and lounge seating and casegoods for the healthcare market. The company markets and sells its products through sales representatives to end users, office furniture dealers, wholesalers, brokers, designers, purchasing companies, and catalog houses. The company was formerly known as The Jasper Corporation and changed its name to Kimball International, Inc. in July 1974. Kimball International, Inc. was incorporated in 1939 and is headquartered in Jasper, Indiana.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, manufactures, imports, and markets residential and contract upholstered and wood furniture products in the United States. It offers sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture for use in home, office, hotel, healthcare, and other commercial applications. The company distributes its products through its sales force and independent representatives. Flexsteel Industries, Inc. was founded in 1929 and is headquartered in Dubuque, Iowa.

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