Head-To-Head Review: Haverty Furniture Companies (NYSE:HVT) vs. Winmark (NASDAQ:WINA)

Haverty Furniture Companies (NYSE:HVT) and Winmark (NASDAQ:WINA) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Haverty Furniture Companies and Winmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haverty Furniture Companies	0	2	0	0	2.00
Winmark	0	1	0	0	2.00

Dividends

Haverty Furniture Companies pays an annual dividend of $1.32 per share and has a dividend yield of 4.8%. Winmark pays an annual dividend of $4.08 per share and has a dividend yield of 1.4%. Haverty Furniture Companies pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Winmark pays out 37.0% of its earnings in the form of a dividend. Haverty Furniture Companies has increased its dividend for 4 consecutive years and Winmark has increased its dividend for 5 consecutive years.

Profitability

This table compares Haverty Furniture Companies and Winmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haverty Furniture Companies	2.93%	7.15%	3.34%
Winmark	47.09%	-99.47%	103.54%

Valuation and Earnings

This table compares Haverty Furniture Companies and Winmark”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haverty Furniture Companies	$780.39 million	0.55	$19.73 million	$1.36	20.22
Winmark	$86.53 million	12.24	$41.65 million	$11.02	26.76

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

Insider & Institutional Ownership

80.6% of Haverty Furniture Companies shares are held by institutional investors. Comparatively, 73.3% of Winmark shares are held by institutional investors. 8.4% of Haverty Furniture Companies shares are held by company insiders. Comparatively, 10.4% of Winmark shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Haverty Furniture Companies has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Winmark has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

Winmark beats Haverty Furniture Companies on 9 of the 14 factors compared between the two stocks.

About Haverty Furniture Companies

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Tempur-Pedic, Serta, Sealy, and Stearns and Foster names. The company sells home furnishings through its retail stores, as well as through its website. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.