Analyzing Toll Brothers (NYSE:TOL) and Bassett Furniture Industries (NASDAQ:BSET)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bassett Furniture Industries and Toll Brothers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bassett Furniture Industries	0	2	0	1	2.67
Toll Brothers	1	4	14	1	2.75

Toll Brothers has a consensus target price of $166.67, suggesting a potential upside of 17.22%. Given Toll Brothers’ stronger consensus rating and higher probable upside, analysts plainly believe Toll Brothers is more favorable than Bassett Furniture Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bassett Furniture Industries	N/A	N/A	N/A
Toll Brothers	N/A	N/A	N/A

Earnings & Valuation

This table compares Bassett Furniture Industries and Toll Brothers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bassett Furniture Industries	N/A	N/A	N/A	$0.79	28.29
Toll Brothers	N/A	N/A	N/A	$12.46	11.41

Toll Brothers 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, 91.8% of Toll Brothers shares are held by institutional investors. 7.3% of Bassett Furniture Industries shares are held by insiders. Comparatively, 1.4% of Toll Brothers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Toll Brothers beats Bassett Furniture Industries on 5 of the 6 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 Toll Brothers

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. Toll Brothers, Inc. was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.