Why Cramer Likes Select Comfort Over Tempur-pedic Stock
In what he called the "Battle of the Beds," Cramer on Friday compared mattress makers Tempur-pedic and Select Comfort.
When it came down to it, though, the "Mad Money" host prefers Select Comfort . The Minneapolis-based company beats Tempur-pedic on every major metric, he explained.
TPX sells for 18 times earnings with a 16 percent growth rate while SCSS sells for 22 times earnings with 19 percent growth.
On a PEG ratio basis, that means Tempur-pedic trades at 1.1 time growth while Select Comfort trades at 1.2 times growth. Select Comfort is only slightly higher, but he thinks it's a much better stock that deserves to trade at even more of a premium.
Read on for Cramer's Earnings-Loaded "Game Plan"