Leggett & Platt Incorporated (LEG)vsSomnigroup International Inc. (SGI)
LEG
Leggett & Platt Incorporated
$10.14
+1.10%
CONSUMER CYCLICAL · Cap: $1.30B
SGI
Somnigroup International Inc.
$74.71
-0.97%
CONSUMER CYCLICAL · Cap: $15.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Somnigroup International Inc. generates 84% more annual revenue ($7.48B vs $4.06B). LEG leads profitability with a 5.8% profit margin vs 5.1%. SGI appears more attractively valued with a PEG of 0.83. SGI earns a higher WallStSmart Score of 78/100 (B+).
LEG
Buy63
out of 100
Grade: C+
SGI
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.3%
Fair Value
$79.09
Current Price
$10.14
$68.95 discount
Margin of Safety
-12.8%
Fair Value
$86.11
Current Price
$74.71
$11.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 87.7% YoY
Every $100 of equity generates 28 in profit
Revenue surging 54.7% year-over-year
Earnings expanding 62.4% YoY
Every $100 of equity generates 21 in profit
Growing faster than its price suggests
Strong operational efficiency at 22.8%
Areas to Watch
Smaller company, higher risk/reward
5.8% margin — thin
Operating margin of 4.7%
Expensive relative to growth rate
5.1% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LEG
The strongest argument for LEG centers on P/E Ratio, Price/Book, EPS Growth.
Bull Case : SGI
The strongest argument for SGI centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 54.7% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : LEG
The primary concerns for LEG are Market Cap, Profit Margin, Operating Margin.
Bear Case : SGI
The primary concerns for SGI are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 41.0x leaves little room for execution misses. Debt-to-equity of 2.22 is elevated, increasing financial risk.
Key Dynamics to Monitor
LEG profiles as a value stock while SGI is a hypergrowth play — different risk/reward profiles.
SGI carries more volatility with a beta of 1.27 — expect wider price swings.
SGI is growing revenue faster at 54.7% — sustainability is the question.
LEG generates stronger free cash flow (102M), providing more financial flexibility.
Bottom Line
SGI scores higher overall (78/100 vs 63/100) and 54.7% revenue growth. LEG offers better value entry with a 84.3% margin of safety. 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.
Leggett & Platt Incorporated
CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA
Leggett & Platt (L&P), based in Carthage, Missouri, is a diversified manufacturer that designs and produces various engineered components and products.
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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