Breville Group (OTCMKTS:BVILF) and Sleep Number (NASDAQ:SNBR) Critical Review

Breville Group (OTCMKTS:BVILF) and Sleep Number (NASDAQ:SNBR) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares Breville Group and Sleep Number”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Breville Group	N/A	N/A	N/A	C$0.37	58.60
Sleep Number	$1.78 billion	0.17	-$15.29 million	($1.52)	-8.78

Breville Group has higher earnings, but lower revenue than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than Breville Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Breville Group and Sleep Number, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Breville Group	0	0	0	0	N/A
Sleep Number	0	3	0	0	2.00

Sleep Number has a consensus target price of $14.17, indicating a potential upside of 6.12%. Given Sleep Number’s higher possible upside, analysts plainly believe Sleep Number is more favorable than Breville Group.

Institutional & Insider Ownership

25.0% of Breville Group shares are held by institutional investors. Comparatively, 85.7% of Sleep Number shares are held by institutional investors. 6.8% of Sleep Number shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Breville Group and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Breville Group	N/A	N/A	N/A
Sleep Number	-2.25%	N/A	-2.00%

About Breville Group

Breville Group Limited designs, develops, markets, and distributes small electrical kitchen appliances in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Housewares International Limited and changed its name to Breville Group Limited in November 2008. Breville Group Limited was founded in 1957 and is headquartered in Alexandria, Australia.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.