Comparing Bassett Furniture Industries (NASDAQ:BSET) & Traeger (NYSE:COOK)

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

Risk and Volatility

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Bassett Furniture Industries and Traeger, as reported by MarketBeat.com.

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

Traeger has a consensus price target of $50.50, indicating a potential upside of 14.12%. Given Traeger’s higher possible upside, analysts plainly believe Traeger is more favorable than Bassett Furniture Industries.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bassett Furniture Industries	$335.28 million	0.55	$6.10 million	$0.79	27.10
Traeger	$559.52 million	0.22	-$115.18 million	($42.04)	-1.05

Bassett Furniture Industries has higher earnings, but lower revenue 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.

Institutional & Insider Ownership

54.4% of Bassett Furniture Industries shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 7.3% of Bassett Furniture Industries shares are held by company insiders. Comparatively, 16.2% of Traeger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Summary

Bassett Furniture Industries beats Traeger on 10 of the 15 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 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.