Financial Review: Leslie’s (NASDAQ:LESL) vs. Fenbo (NASDAQ:FEBO)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Leslie’s and Fenbo, as provided by MarketBeat.

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

Leslie’s currently has a consensus price target of $2.85, suggesting a potential downside of 70.28%. Given Leslie’s’ stronger consensus rating and higher probable upside, equities analysts clearly believe Leslie’s is more favorable than Fenbo.

Profitability

This table compares Leslie’s and Fenbo’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%
Fenbo	N/A	N/A	N/A

Earnings and Valuation

This table compares Leslie’s and Fenbo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leslie’s	$1.24 billion	0.07	-$236.97 million	($29.69)	-0.32
Fenbo	$10.90 million	0.89	-$1.37 million	N/A	N/A

Fenbo has lower revenue, but higher earnings than Leslie’s.

Volatility and Risk

Leslie’s has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Fenbo has a beta of -1.61, indicating that its share price is 261% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Fenbo shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Leslie’s beats Fenbo 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 Fenbo

Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.