Leslie’s (NASDAQ:LESL) & Grocery Outlet (NASDAQ:GO) Head to Head Survey

Grocery Outlet (NASDAQ:GO) and Leslie’s (NASDAQ:LESL) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares Grocery Outlet and Leslie’s”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$4.73 billion	0.17	-$224.91 million	($3.88)	-2.08
Leslie’s	$1.22 billion	0.02	-$236.97 million	($29.69)	-0.10

Grocery Outlet has higher revenue and earnings than Leslie’s. Grocery Outlet is trading at a lower price-to-earnings ratio than Leslie’s, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Grocery Outlet has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

99.9% of Grocery Outlet shares are owned by institutional investors. 4.5% of Grocery Outlet shares are owned by company insiders. Comparatively, 0.5% of Leslie’s shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Grocery Outlet and Leslie’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	11	0	0	1.85
Leslie’s	2	4	1	0	1.86

Grocery Outlet presently has a consensus price target of $10.32, suggesting a potential upside of 27.72%. Leslie’s has a consensus price target of $2.85, suggesting a potential downside of 7.01%. Given Grocery Outlet’s higher probable upside, equities analysts plainly believe Grocery Outlet is more favorable than Leslie’s.

Profitability

This table compares Grocery Outlet and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	-8.08%	5.69%	1.86%
Leslie’s	-22.64%	N/A	-8.22%

Summary

Grocery Outlet beats Leslie’s on 10 of the 14 factors compared between the two stocks.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

About Leslie’s

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 also offers various pool and spa maintenance items, such as chemicals, equipment and parts, cleaning and maintenance equipment, safety, recreational, and fitness related products. In addition, the company provides installation and repair services for pool and spa equipment. It also sells its products through e-commerce websites and third-party marketplaces. The company offers complimentary, commercial-grade in-store, water testing, and analysis services. It serves the residential, professional, and commercial consumers. Leslie’s, Inc. was founded in 1963 and is based in Phoenix, Arizona.