YETI (NYSE:YETI) & Leatt (OTCMKTS:LEAT) Critical Review

YETI (NYSE:YETI) and Leatt (OTCMKTS:LEAT) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares YETI and Leatt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YETI	8.75%	23.62%	13.98%
Leatt	4.12%	5.87%	4.97%

Valuation and Earnings

This table compares YETI and Leatt”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YETI	$1.83 billion	2.10	$175.69 million	$1.92	25.68
Leatt	$44.03 million	1.31	-$2.20 million	$0.36	25.50

YETI has higher revenue and earnings than Leatt. Leatt is trading at a lower price-to-earnings ratio than YETI, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for YETI and Leatt, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YETI	0	9	6	0	2.40
Leatt	0	0	0	0	0.00

YETI currently has a consensus price target of $39.82, indicating a potential downside of 19.25%. Given YETI’s stronger consensus rating and higher possible upside, equities analysts clearly believe YETI is more favorable than Leatt.

Insider and Institutional Ownership

0.6% of Leatt shares are held by institutional investors. 1.1% of YETI shares are held by company insiders. Comparatively, 80.0% of Leatt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

YETI has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Leatt has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

YETI beats Leatt on 12 of the 14 factors compared between the two stocks.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.

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.