Tempur Sealy International (TPX) and Its Competitors Financial Analysis

Tempur Sealy International (NYSE: TPX) is one of 14 public companies in the “Household furniture” industry, but how does it contrast to its competitors? We will compare Tempur Sealy International to similar companies based on the strength of its earnings, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tempur Sealy International and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tempur Sealy International 0 2 6 1 2.89
Tempur Sealy International Competitors 79 390 506 38 2.50

Tempur Sealy International presently has a consensus target price of $49.67, suggesting a potential upside of 13.21%. As a group, “Household furniture” companies have a potential upside of 34.49%. Given Tempur Sealy International’s competitors higher possible upside, analysts clearly believe Tempur Sealy International has less favorable growth aspects than its competitors.

Dividends

Tempur Sealy International pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Tempur Sealy International pays out 12.6% of its earnings in the form of a dividend. As a group, “Household furniture” companies pay a dividend yield of 2.6% and pay out 37.7% of their earnings in the form of a dividend. Tempur Sealy International has raised its dividend for 1 consecutive years.

Insider and Institutional Ownership

92.6% of Tempur Sealy International shares are held by institutional investors. Comparatively, 62.1% of shares of all “Household furniture” companies are held by institutional investors. 3.8% of Tempur Sealy International shares are held by insiders. Comparatively, 9.3% of shares of all “Household furniture” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Tempur Sealy International has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Tempur Sealy International’s competitors have a beta of 0.97, meaning that their average share price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tempur Sealy International and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tempur Sealy International $3.68 billion $348.80 million 15.39
Tempur Sealy International Competitors $1.25 billion $38.98 million 10.57

Tempur Sealy International has higher revenue and earnings than its competitors. Tempur Sealy International is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Tempur Sealy International and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tempur Sealy International 12.82% 155.99% 16.96%
Tempur Sealy International Competitors -13.86% -15.58% 1.58%

Summary

Tempur Sealy International beats its competitors on 12 of the 15 factors compared.

Tempur Sealy International Company Profile

Tempur Sealy International, Inc. develops, manufactures, markets and distributes bedding products. It operates through North America and International segments. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S. and Canada. The International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. Its products include mattresses, adjustable bases, pillows and other sleep and relaxation products. The firm’s brands include Tempur, Tempur-Pedic, Sealy featuring Posturepedic Technology and Stearns & Foster. The company was founded by Robert B. Trussell, Jr. in 1992 and is headquartered in Lexington, KY.

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