GO
Loading...

Why Cramer Likes Select Comfort Over Tempur-pedic Stock

Friday, 10 Feb 2012 | 8:01 PM ET
Cramer: Investors Will Sleep Better with Select Comfort
When it comes to selecting a mattress stock, says Mad Money's Cramer, throw away your Tempur-Pedic, and sleep easier with Select Comfort, it's a much better buy.

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"


  Price   Change %Change
SCSS
---
TPX
---

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
SCSS
---
TPX
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.