WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Somnigroup International Inc. generates 114% more annual revenue ($7.67B vs $3.59B). SGI leads profitability with a 6.8% profit margin vs 0.0%. HNI appears more attractively valued with a PEG of 0.41. SGI earns a higher WallStSmart Score of 68/100 (B-).

HNI

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 4.0Value: 6.0Quality: 5.0

SGI

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 3/9Altman Z: 2.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HNIUndervalued (+9.3%)

Margin of Safety

+9.3%

Fair Value

$57.01

Current Price

$33.61

$23.40 discount

UndervaluedFair: $57.01Overvalued
SGIUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$505.76

Current Price

$70.67

$435.09 discount

UndervaluedFair: $505.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HNI3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
124.7%10/10

Revenue surging 124.7% year-over-year

SGI2 strengths · Avg: 9.0/10
EPS GrowthGrowth
62.4%10/10

Earnings expanding 62.4% YoY

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Areas to Watch

HNI4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

P/E RatioValuation
128.5x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-10.2%2/10

Earnings declined 10.2%

SGI4 concerns · Avg: 2.8/10
P/E RatioValuation
38.4x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.221/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : HNI

The strongest argument for HNI centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 124.7% demonstrates continued momentum. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bull Case : SGI

The strongest argument for SGI centers on EPS Growth, PEG Ratio. Revenue growth of 12.3% demonstrates continued momentum. 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, P/E Ratio. A P/E of 128.5x leaves little room for execution misses. Thin 0.0% margins leave little buffer for downturns.

Bear Case : SGI

The primary concerns for SGI are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.22 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 1.25 — expect wider price swings.

HNI is growing revenue faster at 124.7% — sustainability is the question.

SGI generates stronger free cash flow (41M), providing more financial flexibility.

Bottom Line

SGI scores higher overall (68/100 vs 58/100) and 12.3% revenue growth. Both earn "Strong 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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