Leslie’s (NASDAQ:LESL – Get Free Report) and Lands’ End (NASDAQ:LE – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Valuation & Earnings
This table compares Leslie’s and Lands’ End”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leslie’s | $1.18 billion | 0.00 | -$236.97 million | ($27.08) | -0.00 |
| Lands’ End | $1.34 billion | 0.20 | $5.51 million | $11.24 | 0.82 |
Lands’ End has higher revenue and earnings than Leslie’s. Leslie’s is trading at a lower price-to-earnings ratio than Lands’ End, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
37.5% of Lands’ End shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by insiders. Comparatively, 2.1% of Lands’ End shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Leslie’s and Lands’ End’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leslie’s | -21.24% | N/A | -8.96% |
| Lands’ End | 26.62% | 7.96% | 3.38% |
Analyst Recommendations
This is a summary of recent recommendations for Leslie’s and Lands’ End, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leslie’s | 2 | 4 | 1 | 0 | 1.86 |
| Lands’ End | 0 | 1 | 1 | 0 | 2.50 |
Leslie’s presently has a consensus target price of $2.85, suggesting a potential upside of 2,694.12%. Lands’ End has a consensus target price of $20.00, suggesting a potential upside of 116.45%. Given Leslie’s’ higher probable upside, equities analysts clearly believe Leslie’s is more favorable than Lands’ End.
Risk and Volatility
Leslie’s has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Lands’ End has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.
Summary
Lands’ End beats Leslie’s on 12 of the 13 factors compared between the two stocks.
About Leslie’s
Leslie’s, Inc. is a specialty retailer focused on swimming pool and spa care. The company sells pool chemicals, cleaning and maintenance supplies, equipment, replacement parts, safety products, outdoor living products and related merchandise to residential and commercial customers. Leslie’s operates through a network of retail stores and an e-commerce platform, offering products from major manufacturers as well as proprietary brands. Its services include water testing, equipment installation, repair and maintenance support, helping customers maintain pools and spas throughout their useful life.
About Lands’ End
Lands’ End, Inc. is an American apparel and lifestyle retailer that sells clothing, footwear, accessories and home products. Its offerings include casual apparel, outerwear, swimwear and school and business uniforms. Founded in 1963 in Chicago as a mail-order sailing supply business, the company grew into a broader apparel retailer. Lands’ End sells through its e-commerce platforms, catalogs, retail locations and wholesale and uniform channels. The company serves customers in the United States and international markets, including through online operations and retail and distribution partners.
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