Analyzing Leslie’s (NASDAQ:LESL) & Big Tree Cloud (NASDAQ:DSY)

Leslie’s (NASDAQ:LESL) and Big Tree Cloud (NASDAQ:DSY) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Leslie’s and Big Tree Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leslie’s	-22.64%	N/A	-8.22%
Big Tree Cloud	N/A	N/A	N/A

Volatility & Risk

Leslie’s has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Big Tree Cloud has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

60.2% of Big Tree Cloud shares are held by institutional investors. 0.5% of Leslie’s shares are held by company insiders. Comparatively, 34.1% of Big Tree Cloud shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Leslie’s and Big Tree Cloud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leslie’s	2	4	1	0	1.86
Big Tree Cloud	1	0	0	0	1.00

Leslie’s presently has a consensus target price of $2.85, suggesting a potential downside of 17.39%. Given Leslie’s’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Leslie’s is more favorable than Big Tree Cloud.

Earnings and Valuation

This table compares Leslie’s and Big Tree Cloud”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leslie’s	$1.24 billion	0.03	-$236.97 million	($29.69)	-0.12
Big Tree Cloud	$2.56 million	3.79	-$32.53 million	N/A	N/A

Big Tree Cloud has lower revenue, but higher earnings than Leslie’s.

Summary

Big Tree Cloud beats Leslie’s on 6 of the 11 factors compared between the two stocks.

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.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.