Analyzing Traeger (NYSE:COOK) and Bassett Furniture Industries (NASDAQ:BSET)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Traeger and Bassett Furniture Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Bassett Furniture Industries	0	2	0	1	2.67

Traeger currently has a consensus target price of $50.50, indicating a potential downside of 2.20%. Given Traeger’s higher probable upside, equities research analysts plainly believe Traeger is more favorable than Bassett Furniture Industries.

Risk & Volatility

Traeger has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Bassett Furniture Industries has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traeger	-23.23%	-13.76%	-3.59%
Bassett Furniture Industries	2.02%	4.36%	2.26%

Insider and Institutional Ownership

46.8% of Traeger shares are owned by institutional investors. Comparatively, 54.4% of Bassett Furniture Industries shares are owned by institutional investors. 16.2% of Traeger shares are owned by insiders. Comparatively, 7.3% of Bassett Furniture Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Traeger and Bassett Furniture Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$559.52 million	0.26	-$115.18 million	($42.04)	-1.23
Bassett Furniture Industries	$335.28 million	0.54	$6.10 million	$0.79	26.52

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

Summary

Bassett Furniture Industries beats Traeger on 10 of the 15 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

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.