Nova LifeStyle (NVFY) versus Its Competitors Critical Review

Nova LifeStyle (NASDAQ:NVFYGet Rating) is one of 14 public companies in the “Household furniture” industry, but how does it contrast to its peers? We will compare Nova LifeStyle to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.

Risk & Volatility

Nova LifeStyle has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Nova LifeStyle’s peers have a beta of 1.81, meaning that their average stock price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Nova LifeStyle and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nova LifeStyle 0 0 0 0 N/A
Nova LifeStyle Competitors 91 426 523 40 2.47

As a group, “Household furniture” companies have a potential upside of 36.20%. Given Nova LifeStyle’s peers higher possible upside, analysts clearly believe Nova LifeStyle has less favorable growth aspects than its peers.

Institutional & Insider Ownership

8.6% of Nova LifeStyle shares are owned by institutional investors. Comparatively, 63.0% of shares of all “Household furniture” companies are owned by institutional investors. 40.4% of Nova LifeStyle shares are owned by company insiders. Comparatively, 9.5% of shares of all “Household furniture” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Nova LifeStyle and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nova LifeStyle $12.81 million -$19.96 million -0.35
Nova LifeStyle Competitors $1.47 billion $103.48 million 11.11

Nova LifeStyle’s peers have higher revenue and earnings than Nova LifeStyle. Nova LifeStyle is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Nova LifeStyle and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nova LifeStyle -155.80% -43.89% -37.73%
Nova LifeStyle Competitors -9.79% -23.48% -0.14%

Summary

Nova LifeStyle peers beat Nova LifeStyle on 9 of the 10 factors compared.

Nova LifeStyle Company Profile (Get Rating)

Nova LifeStyle, Inc., through its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based furniture pieces for the living rooms, dining rooms, bedrooms, and home offices. Its products include sofas, chairs, dining tables, beds, entertainment consoles, cabinets, and cupboards. The company also provides physiotherapeutic jade mats for use in therapy clinics, hospitality, and real estate projects. It distributes its products under the Diamond Sofa brand directly, as well as through internet sales and online marketing campaigns, and participation in exhibitions and trade shows primarily to furniture distributors and retailers. The company was formerly known as Stevens Resources, Inc. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.

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