LZB vs WSM

For growth investors, La-Z-Boy Incorporated (LZB) is the stronger pick with 3.

0% revenue growth year-over-year, versus 1. 2% for Williams-Sonoma, Inc. (WSM). La-Z-Boy Incorporated (LZB) offers the better valuation at 15. 1x trailing P/E (13. 5x forward), making it the more compelling value choice. Analysts rate La-Z-Boy Incorporated (LZB) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, La-Z-Boy Incorporated (LZB) is the cheapest at 15.

1x versus Williams-Sonoma, Inc. at 20. 8x. On forward P/E, La-Z-Boy Incorporated is actually cheaper at 13. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Williams-Sonoma, Inc. wins at 1. 36x versus La-Z-Boy Incorporated's 1. 88x — a reasonable growth-adjusted valuation.

Over the past 5 years, Williams-Sonoma, Inc.

(WSM) delivered a total return of +107. 3%, compared to -11. 5% for La-Z-Boy Incorporated (LZB). Over 10 years, the gap is even starker: WSM returned +587. 8% versus LZB's +58. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), La-Z-Boy Incorporated (LZB) is the lower-risk stock at 0.

97β versus Williams-Sonoma, Inc. 's 1. 49β — meaning WSM is approximately 55% more volatile than LZB relative to the S&P 500. On balance sheet safety, La-Z-Boy Incorporated (LZB) carries a lower debt/equity ratio of 48% versus 70% for Williams-Sonoma, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), La-Z-Boy Incorporated (LZB) is pulling ahead at 3.

0% versus 1. 2% for Williams-Sonoma, Inc. (WSM). On earnings-per-share growth, the picture is similar: Williams-Sonoma, Inc. grew EPS 0. 6% year-over-year, compared to -17. 0% for La-Z-Boy Incorporated. Over a 3-year CAGR, WSM leads at -3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Williams-Sonoma, Inc.

(WSM) is the more profitable company, earning 13. 9% net margin versus 4. 7% for La-Z-Boy Incorporated — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSM leads at 18. 1% versus 6. 4% for LZB. At the gross margin level — before operating expenses — WSM leads at 46. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Williams-Sonoma, Inc. (WSM) is the more undervalued stock at a PEG of 1. 36x versus La-Z-Boy Incorporated's 1. 88x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, La-Z-Boy Incorporated (LZB) trades at 13. 5x forward P/E versus 21. 1x for Williams-Sonoma, Inc. — 7. 6x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

La-Z-Boy Incorporated (LZB) offers the highest yield at 2. 3%, versus 1. 4% for Williams-Sonoma, Inc. (WSM).

For long-horizon retirement investors, La-Z-Boy Incorporated (LZB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

97), 2. 3% yield). Both have compounded well over 10 years (LZB: +58. 2%, WSM: +587. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: LZB is a small-cap deep-value stock; WSM is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.