Leatt (LEAT) versus Its Peers Critical Survey

Valuation & Earnings

This table compares Leatt and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Leatt	$44.03 million	-$2.20 million	-232.00
Leatt Competitors	$1.53 billion	-$20.69 million	-32.53

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

Profitability

This table compares Leatt and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leatt	-0.55%	-0.69%	-0.59%
Leatt Competitors	-55.32%	-79.28%	-11.38%

Insider & Institutional Ownership

0.6% of Leatt shares are owned by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are owned by institutional investors. 80.0% of Leatt shares are owned by insiders. Comparatively, 22.5% of shares of all “LEISURE&REC PRD” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Leatt has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Leatt’s peers have a beta of 1.71, indicating that their average stock price is 71% more volatile than the S&P 500.

Summary

Leatt beats its peers on 5 of the 9 factors compared.

About Leatt

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.