Procter & Gamble (NYSE:PG) & Leslie’s (NASDAQ:LESL) Head to Head Contrast

Procter & Gamble (NYSE:PG) and Leslie’s (NASDAQ:LESL) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	19.74%	32.63%	13.53%
Leslie’s	-19.08%	N/A	-5.76%

Volatility and Risk

Procter & Gamble has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares Procter & Gamble and Leslie’s”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	3.93	$15.97 billion	$6.85	20.70
Leslie’s	$1.24 billion	0.01	-$236.97 million	($25.54)	-0.07

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

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by insiders. Comparatively, 0.7% of Leslie’s shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Procter & Gamble and Leslie’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	10	15	0	2.60
Leslie’s	2	9	0	0	1.82

Procter & Gamble presently has a consensus target price of $169.23, suggesting a potential upside of 19.33%. Leslie’s has a consensus target price of $23.81, suggesting a potential upside of 1,222.53%. Given Leslie’s’ higher possible upside, analysts clearly believe Leslie’s is more favorable than Procter & Gamble.

Summary

Procter & Gamble beats Leslie’s on 11 of the 14 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, 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.