Leslie’s (NASDAQ:LESL) vs. Abercrombie & Fitch (NYSE:ANF) Financial Survey

Abercrombie & Fitch (NYSE:ANF) and Leslie’s (NASDAQ:LESL) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Volatility & Risk

Abercrombie & Fitch has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Profitability

This table compares Abercrombie & Fitch and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abercrombie & Fitch	10.03%	33.52%	13.05%
Leslie’s	-21.24%	N/A	-8.96%

Earnings & Valuation

This table compares Abercrombie & Fitch and Leslie’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abercrombie & Fitch	$5.27 billion	1.10	$506.92 million	$11.68	11.65
Leslie’s	$1.24 billion	0.00	-$236.97 million	($27.08)	-0.01

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

Analyst Ratings

This is a summary of current ratings and price targets for Abercrombie & Fitch and Leslie’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abercrombie & Fitch	0	5	8	2	2.80
Leslie’s	2	4	1	0	1.86

Abercrombie & Fitch presently has a consensus target price of $155.38, suggesting a potential upside of 14.24%. Leslie’s has a consensus target price of $2.85, suggesting a potential upside of 1,856.07%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Abercrombie & Fitch.

Summary

Abercrombie & Fitch beats Leslie’s on 11 of the 13 factors compared between the two stocks.

About Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.

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.