Edgewell Personal Care (NYSE:EPC – Get Free Report) and Leslie’s (NASDAQ:LESL – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Profitability
This table compares Edgewell Personal Care and Leslie’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Edgewell Personal Care | -1.76% | 7.16% | 2.90% |
| Leslie’s | -22.69% | N/A | -7.11% |
Earnings and Valuation
This table compares Edgewell Personal Care and Leslie’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Edgewell Personal Care | $2.22 billion | 0.47 | $25.40 million | ($0.85) | -26.12 |
| Leslie’s | $1.24 billion | 0.01 | -$236.97 million | ($29.66) | -0.03 |
Edgewell Personal Care has higher revenue and earnings than Leslie’s. Edgewell Personal Care is trading at a lower price-to-earnings ratio than Leslie’s, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Edgewell Personal Care has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Insider and Institutional Ownership
91.9% of Edgewell Personal Care shares are owned by institutional investors. 3.0% of Edgewell Personal Care shares are owned by company insiders. Comparatively, 0.5% of Leslie’s shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Edgewell Personal Care and Leslie’s, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Edgewell Personal Care | 1 | 4 | 3 | 0 | 2.25 |
| Leslie’s | 3 | 5 | 0 | 0 | 1.63 |
Edgewell Personal Care presently has a consensus target price of $23.67, suggesting a potential upside of 6.61%. Leslie’s has a consensus target price of $6.55, suggesting a potential upside of 577.77%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Edgewell Personal Care.
Summary
Edgewell Personal Care beats Leslie’s on 11 of the 14 factors compared between the two stocks.
About Edgewell Personal Care
Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.
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.
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