Head-To-Head Analysis: Newell Brands (NASDAQ:NWL) and Leslie’s (NASDAQ:LESL)

Newell Brands (NASDAQ:NWL) and Leslie’s (NASDAQ:LESL) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Volatility and Risk

Newell Brands has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Institutional and Insider Ownership

92.5% of Newell Brands shares are held by institutional investors. 1.6% of Newell Brands shares are held by company insiders. Comparatively, 0.5% of Leslie’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Newell Brands and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-3.91%	8.89%	2.03%
Leslie’s	-22.64%	N/A	-8.22%

Earnings & Valuation

This table compares Newell Brands and Leslie’s”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.20 billion	0.29	-$285.00 million	($0.67)	-7.42
Leslie’s	$1.24 billion	0.06	-$236.97 million	($29.69)	-0.26

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

Analyst Recommendations

This is a summary of current recommendations for Newell Brands and Leslie’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	2	5	3	0	2.10
Leslie’s	2	4	1	0	1.86

Newell Brands presently has a consensus target price of $4.94, suggesting a potential downside of 0.51%. Leslie’s has a consensus target price of $2.85, suggesting a potential downside of 62.89%. Given Newell Brands’ stronger consensus rating and higher probable upside, research analysts clearly believe Newell Brands is more favorable than Leslie’s.

Summary

Newell Brands beats Leslie’s on 11 of the 14 factors compared between the two stocks.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

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.