Reviewing WD-40 (NASDAQ:WDFC) & Leslie’s (NASDAQ:LESL)

WD-40 (NASDAQ:WDFC) and Leslie’s (NASDAQ:LESL) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares WD-40 and Leslie’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	4.38	$90.99 million	$5.88	34.33
Leslie’s	$1.21 billion	0.03	-$236.97 million	($29.69)	-0.12

WD-40 has higher earnings, but lower revenue than Leslie’s. Leslie’s is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for WD-40 and Leslie’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	1	2	0	2.67
Leslie’s	2	4	1	0	1.86

WD-40 presently has a consensus target price of $270.00, indicating a potential upside of 33.75%. Leslie’s has a consensus target price of $2.85, indicating a potential downside of 18.57%. Given WD-40’s stronger consensus rating and higher possible upside, research analysts clearly believe WD-40 is more favorable than Leslie’s.

Volatility & Risk

WD-40 has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares WD-40 and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	12.57%	30.23%	17.15%
Leslie’s	-22.64%	N/A	-8.02%

Institutional and Insider Ownership

91.5% of WD-40 shares are held by institutional investors. 0.8% of WD-40 shares are held by insiders. Comparatively, 0.5% of Leslie’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

WD-40 beats Leslie’s on 12 of the 14 factors compared between the two stocks.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.

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.