Leslie’s (NASDAQ:LESL – Get Free Report) and TJX Companies (NYSE:TJX – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a summary of recent ratings for Leslie’s and TJX Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leslie’s | 2 | 4 | 1 | 0 | 1.86 |
| TJX Companies | 0 | 4 | 16 | 2 | 2.91 |
Leslie’s presently has a consensus target price of $2.85, suggesting a potential upside of 467.39%. TJX Companies has a consensus target price of $171.63, suggesting a potential upside of 36.16%. Given Leslie’s’ higher probable upside, equities analysts clearly believe Leslie’s is more favorable than TJX Companies.
Volatility and Risk
Profitability
This table compares Leslie’s and TJX Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leslie’s | -21.24% | N/A | -8.96% |
| TJX Companies | 9.73% | 56.56% | 15.92% |
Insider & Institutional Ownership
91.1% of TJX Companies shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by company insiders. Comparatively, 0.2% of TJX Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Leslie’s and TJX Companies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leslie’s | $1.24 billion | 0.00 | -$236.97 million | ($27.08) | -0.02 |
| TJX Companies | $60.37 billion | 2.30 | $5.49 billion | $5.41 | 23.30 |
TJX Companies has higher revenue and earnings than Leslie’s. Leslie’s is trading at a lower price-to-earnings ratio than TJX Companies, indicating that it is currently the more affordable of the two stocks.
Summary
TJX Companies beats Leslie’s on 12 of the 15 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 TJX Companies
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.
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