WallStSmart

HNI Corp (HNI)vsSomnigroup International Inc. (SGI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Somnigroup International Inc. generates 73% more annual revenue ($7.62B vs $4.39B). SGI leads profitability with a 7.0% profit margin vs 0.1%. HNI appears more attractively valued with a PEG of 0.51. SGI earns a higher WallStSmart Score of 60/100 (C+).

HNI

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 6.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.26

SGI

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 8.0Quality: 4.0
Piotroski: 2/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HNIUndervalued (+7.7%)

Margin of Safety

+7.7%

Fair Value

$56.04

Current Price

$47.79

$8.25 discount

UndervaluedFair: $56.04Overvalued
SGIUndervalued (+86.4%)

Margin of Safety

+86.4%

Fair Value

$477.15

Current Price

$64.72

$412.43 discount

UndervaluedFair: $477.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HNI3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
120.7%10/10

Revenue surging 120.7% year-over-year

PEG RatioValuation
0.518/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

SGI1 strengths · Avg: 8.0/10
PEG RatioValuation
0.838/10

Growing faster than its price suggests

Areas to Watch

HNI4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-31.5%2/10

Earnings declined 31.5%

SGI4 concerns · Avg: 3.5/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Debt/EquityHealth
1.993/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : HNI

The strongest argument for HNI centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 120.7% demonstrates continued momentum. PEG of 0.51 suggests the stock is reasonably priced for its growth.

Bull Case : SGI

The strongest argument for SGI centers on PEG Ratio. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bear Case : HNI

The primary concerns for HNI are Return on Equity, Profit Margin, Piotroski F-Score. Thin 0.1% margins leave little buffer for downturns.

Bear Case : SGI

The primary concerns for SGI are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 1.99 is elevated, increasing financial risk.

Key Dynamics to Monitor

HNI profiles as a hypergrowth stock while SGI is a value play — different risk/reward profiles.

SGI carries more volatility with a beta of 1.19 — expect wider price swings.

HNI is growing revenue faster at 120.7% — sustainability is the question.

SGI generates stronger free cash flow (182M), providing more financial flexibility.

Bottom Line

HNI scores higher overall (60/100 vs 60/100) and 120.7% revenue growth. SGI offers better value entry with a 86.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HNI Corp

CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA

HNI Corporation manufactures and sells workplace furniture and residential construction products in the United States, Canada, China, Hong Kong, India, Mexico, Dubai, Taiwan, and Singapore. The company is headquartered in Muscatine, Iowa.

Somnigroup International Inc.

CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA

Somnigroup International Inc., designs, manufactures, distributes, and retails bedding products in the United States and internationally. The company is headquartered in Lexington, Kentucky.

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