Comparing Vision Marine Technologies (NASDAQ:VMAR) and Leatt (OTCMKTS:LEAT)

Leatt (OTCMKTS:LEAT) and Vision Marine Technologies (NASDAQ:VMAR) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leatt	$44.03 million	1.33	-$2.20 million	$0.36	26.11
Vision Marine Technologies	$13.83 million	0.08	-$21.65 million	($281.54)	0.00

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Leatt and Vision Marine Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leatt	0	0	0	0	0.00
Vision Marine Technologies	1	0	0	0	1.00

Risk & Volatility

Leatt has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Vision Marine Technologies has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Profitability

This table compares Leatt and Vision Marine Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leatt	4.12%	5.87%	4.97%
Vision Marine Technologies	-156.52%	-198.37%	-74.21%

Institutional & Insider Ownership

0.6% of Leatt shares are held by institutional investors. Comparatively, 53.8% of Vision Marine Technologies shares are held by institutional investors. 80.0% of Leatt shares are held by insiders. Comparatively, 40.4% of Vision Marine Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Leatt beats Vision Marine Technologies on 10 of the 12 factors compared between the two stocks.

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.

About Vision Marine Technologies

Vision Marine Technologies Inc. designs, develops, manufactures, sells, and rents electric boats in Canada, the United States, and internationally. It offers e-motion electric powertrain technology; e-motion electric outboard powertrain system; electric boats; maintenance, repair, and customer support services; as well as manufactures customized boats. The company also provides its products through website and distributors. It serves original equipment manufacturers, retail customer, boat clubs, and boat rental operations. The company was formerly known as Riopel Marine Inc. and changed its name to Vision Marine Technologies Inc. in April 2020. Vision Marine Technologies Inc. was founded in 1995 and is headquartered in Boisbriand, Canada.