Head to Head Review: Sadot Group (NASDAQ:SDOT) vs. Leslie’s (NASDAQ:LESL)

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

Profitability

This table compares Sadot Group and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sadot Group	-37.82%	-963.54%	-188.85%
Leslie’s	-22.64%	N/A	-8.22%

Risk & Volatility

Sadot Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sadot Group 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
Sadot Group	$246.90 million	0.00	-$93.39 million	($14.98)	-0.18
Leslie’s	$1.24 billion	0.03	-$236.97 million	($29.69)	-0.13

Sadot Group has higher earnings, but lower revenue than Leslie’s. Sadot Group 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 breakdown of current recommendations and price targets for Sadot Group and Leslie’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sadot Group	1	0	0	0	1.00
Leslie’s	2	4	1	0	1.86

Leslie’s has a consensus price target of $2.85, indicating a potential downside of 25.39%. Given Leslie’s’ stronger consensus rating and higher possible upside, analysts plainly believe Leslie’s is more favorable than Sadot Group.

Institutional & Insider Ownership

13.3% of Sadot Group shares are owned by institutional investors. 0.4% of Sadot Group shares are owned by insiders. Comparatively, 0.5% of Leslie’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Leslie’s beats Sadot Group on 11 of the 14 factors compared between the two stocks.

About Sadot Group

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

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.