Reviewing Leslie’s (NASDAQ:LESL) and Lowe’s Companies (NYSE:LOW)

Lowe’s Companies (NYSE:LOW) and Leslie’s (NASDAQ:LESL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Lowe’s Companies and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	7.34%	-75.67%	12.82%
Leslie’s	-21.24%	N/A	-8.96%

Insider & Institutional Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. 0.3% of Lowe’s Companies 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Lowe’s Companies 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
Lowe’s Companies	$90.43 billion	1.28	$6.65 billion	$11.83	17.51
Leslie’s	$1.24 billion	0.00	-$236.97 million	($27.08)	-0.02

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lowe’s Companies and Leslie’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	2	11	23	0	2.58
Leslie’s	2	4	1	0	1.86

Lowe’s Companies presently has a consensus target price of $258.53, suggesting a potential upside of 24.79%. Leslie’s has a consensus target price of $2.85, suggesting a potential upside of 422.84%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Lowe’s Companies.

Risk and Volatility

Lowe’s Companies has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

Lowe’s Companies beats Leslie’s on 10 of the 14 factors compared between the two stocks.

About Lowe’s Companies

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

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.