Leslie’s (NASDAQ:LESL) vs. Group 1 Automotive (NYSE:GPI) Financial Contrast

Group 1 Automotive (NYSE:GPI – Get Free Report) and Leslie’s (NASDAQ:LESL – 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 earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Group 1 Automotive and Leslie’s”s gross revenue, earnings per share (EPS) 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 9.91
Leslie’s $1.24 billion 0.00 -$236.97 million ($27.08) -0.00

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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Group 1 Automotive and Leslie’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Group 1 Automotive 3 2 5 0 2.20
Leslie’s 2 4 1 0 1.86

Group 1 Automotive currently has a consensus price target of $338.62, indicating a potential upside of 42.36%. Leslie’s has a consensus price target of $2.85, indicating a potential upside of 4,346.18%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Group 1 Automotive.

Institutional and Insider Ownership

99.9% of Group 1 Automotive shares are held by institutional investors. 2.4% of Group 1 Automotive shares are held by company insiders. Comparatively, 0.5% of Leslie’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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%

Volatility & Risk

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

Summary

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

About Group 1 Automotive

(Get Free Report)

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

(Get Free Report)

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.

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