Leslie’s (NASDAQ:LESL – Get Free Report) and O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Risk & Volatility
Leslie’s has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Profitability
This table compares Leslie’s and O’Reilly Automotive’s 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% |
| O’Reilly Automotive | N/A | N/A | N/A |
Valuation & Earnings
This table compares Leslie’s and O’Reilly Automotive”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leslie’s | $1.18 billion | 0.00 | -$236.97 million | ($27.08) | -0.00 |
| O’Reilly Automotive | $18.57 billion | 3.91 | $2.54 billion | $3.14 | 28.61 |
O’Reilly Automotive has higher revenue and earnings than Leslie’s. Leslie’s is trading at a lower price-to-earnings ratio than O’Reilly Automotive, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
85.0% of O’Reilly Automotive shares are held by institutional investors. 0.5% of Leslie’s shares are held by insiders. Comparatively, 0.8% of O’Reilly Automotive shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Leslie’s and O’Reilly Automotive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leslie’s | 2 | 4 | 1 | 0 | 1.86 |
| O’Reilly Automotive | 0 | 3 | 17 | 0 | 2.85 |
Leslie’s currently has a consensus target price of $2.85, suggesting a potential upside of 2,694.12%. O’Reilly Automotive has a consensus target price of $108.11, suggesting a potential upside of 20.36%. Given Leslie’s’ higher possible upside, equities analysts plainly believe Leslie’s is more favorable than O’Reilly Automotive.
Summary
O’Reilly Automotive beats Leslie’s on 11 of the 13 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 O’Reilly Automotive
O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.
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