Critical Comparison: Hooker Furnishings (NASDAQ:HOFT) versus Man Wah (OTCMKTS:MAWHY)

Insider & Institutional Ownership

73.6% of Hooker Furnishings shares are owned by institutional investors. 2.2% of Hooker Furnishings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hooker Furnishings and Man Wah”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hooker Furnishings	$397.46 million	0.27	-$12.51 million	($1.09)	-9.05
Man Wah	$2.17 billion	1.04	$264.63 million	N/A	N/A

Man Wah has higher revenue and earnings than Hooker Furnishings.

Profitability

This table compares Hooker Furnishings and Man Wah’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hooker Furnishings	-2.95%	-3.41%	-2.22%
Man Wah	N/A	N/A	N/A

Volatility and Risk

Hooker Furnishings has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Man Wah has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Dividends

Hooker Furnishings pays an annual dividend of $0.92 per share and has a dividend yield of 9.3%. Man Wah pays an annual dividend of $0.49 per share and has a dividend yield of 4.2%. Hooker Furnishings pays out -84.4% of its earnings in the form of a dividend. Hooker Furnishings has increased its dividend for 9 consecutive years. Hooker Furnishings is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

About Hooker Furnishings

Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture. It operates in three segments: Hooker Branded, Home Meridian, and Domestic Upholstery. The Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand. The Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and imported leather motion upholstery under the Prime Resources International brand. This segment also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name. The Domestic Upholstery segment offers motion and stationary leather furniture under the Bradington-Young brand; chairs, sofas, sectionals, recliners, and a variety of accent upholstery pieces under the HF Custom brand; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. This segment also designs and manufactures outdoor furniture under the Sunset West brand. The company supplies upholstered seating and casegoods to upscale senior living and assisted living facilities through designers, design firms, industry dealers, and distributors under the H Contract brand; and interior designer products under the Lifestyle Brands name; and lighting, accessories, and home décor products under the BOBO Intriguing Objects brand. It sells home furnishing products through retailers, such as independent furniture stores, department stores, mass merchants, national chains, catalog merchants, interior designers, and e-commerce retailers primarily in North America. Hooker Furnishings Corporation was incorporated in 1924 and is headquartered in Martinsville, Virginia.

About Man Wah

Man Wah Holdings Limited, an investment holding company, engages in the manufacture, wholesale, trading, and distribution of sofas and ancillary products in the People's Republic of China, North America, Europe, and internationally. The company operates through Sofa and Ancillary Products, Other Products, Other Business, and Home Group Business segments. It offers mattresses, smart furniture spare parts, and metal mechanism for recliners. The company is also involved in the production and sale of chairs and other products to railways, cinema chains, airlines, yachts, private clubs and other commercial customers; advertising and marketing of home furnishing products; property investment business; operation, leasing, and management of furniture malls; manufacturing and trading of bedding products, other furniture, and furniture components, as well as foam products; and research and production of smart drive machines and electric regulators. In addition, it offers property management, development, and leasing services; offshore sales, business consultancy, and back-office support services; business management, advertising, and design services; and marketing, logistics, and warehousing services. The company also operates hotel; and sells residential properties. The company was founded in 1992 and is based in Fo Tan, Hong Kong. Man Wah Holdings Limited is a subsidiary of Man Wah Investments Limited.