Leslie’s (NASDAQ:LESL) and Group 1 Automotive (NYSE:GPI) Head to Head Analysis

Group 1 Automotive (NYSE:GPI) and Leslie’s (NASDAQ:LESL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

99.9% of Group 1 Automotive shares are owned by institutional investors. 2.4% of Group 1 Automotive 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Group 1 Automotive has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Profitability

This table compares Group 1 Automotive and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	1.31%	15.66%	4.43%
Leslie’s	-21.24%	N/A	-8.96%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Group 1 Automotive and Leslie’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	2	3	5	0	2.30
Leslie’s	2	4	1	0	1.86

Group 1 Automotive presently has a consensus target price of $360.25, indicating a potential upside of 44.21%. Leslie’s has a consensus target price of $2.85, indicating a potential upside of 1,856.07%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Group 1 Automotive.

Earnings and Valuation

This table compares Group 1 Automotive 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
Group 1 Automotive	$22.57 billion	0.13	$325.20 million	$24.01	10.40
Leslie’s	$1.24 billion	0.00	-$236.97 million	($27.08)	-0.01

Group 1 Automotive has higher revenue and earnings than Leslie’s. Leslie’s is trading at a lower price-to-earnings ratio than Group 1 Automotive, indicating that it is currently the more affordable of the two stocks.

Summary

Group 1 Automotive beats Leslie’s on 12 of the 14 factors compared between the two stocks.

About Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.

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.