Contrasting Leslie’s (LESL) and Its Peers

Leslie’s (NASDAQ:LESLGet Rating) is one of 29 public companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Leslie’s to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, earnings, dividends and institutional ownership.

Volatility and Risk

Leslie’s has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Leslie’s’ rivals have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

44.7% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 3.6% of Leslie’s shares are held by insiders. Comparatively, 15.7% of shares of all “Retail stores, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Leslie’s and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Leslie’s $1.34 billion $126.63 million 20.92
Leslie’s Competitors $7.60 billion $13.49 million 3.74

Leslie’s’ rivals have higher revenue, but lower earnings than Leslie’s. Leslie’s is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Leslie’s and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leslie’s 9.97% -48.04% 15.88%
Leslie’s Competitors -9.94% -4.22% -0.28%

Analyst Ratings

This is a breakdown of recent ratings for Leslie’s and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leslie’s 0 1 10 0 2.91
Leslie’s Competitors 90 627 1154 43 2.60

Leslie’s currently has a consensus target price of $28.18, suggesting a potential upside of 87.13%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 48.46%. Given Leslie’s’ stronger consensus rating and higher possible upside, analysts plainly believe Leslie’s is more favorable than its rivals.

Summary

Leslie’s beats its rivals on 7 of the 13 factors compared.

Leslie’s Company Profile (Get Rating)

Leslie's, Inc. operates as a direct-to-consumer pool and spa care brand in the United States. The company markets and sells pool and spa supplies and related products and services. It offers pool chemicals consisting of chlorine, sanitizers, water balancers, specialty chemicals, and algae control; pool covers, including winter, solar and safety covers, leaf nets, cover reels, and cover alternatives; pool equipment, which comprise pool cleaners, pool pumps, pool filters, pool heating, and lighting; and pools, such as above ground pools, soft side pools, above ground pools liners and equipment, ladders and rails, and diving boards. The company also provides pool maintenance products, including pool closing and opening supplies, filter catridges, chlorine floaters, backwash and vacuum hoses, and cleaning attachments; parts, such as automatic pool cleaner parts, pool filter and pump parts, and pool heater and heat pump parts; and safety, recreational, and fitness-related products. In addition, it provides pool equipment and repair services. The company markets its products through 952 company operated locations in 38 states and e-commerce websites. It serves the residential, professional, and commercial consumers. The company was founded in 1963 and is headquartered in Phoenix, Arizona.

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