Contrasting Leslie’s (NASDAQ:LESL) & Bath & Body Works (NYSE:BBWI)

Leslie’s (NASDAQ:LESL) and Bath & Body Works (NYSE:BBWI) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

95.1% of Bath & Body Works shares are owned by institutional investors. 0.4% of Leslie’s shares are owned by insiders. Comparatively, 0.3% of Bath & Body Works shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Leslie’s has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Leslie’s and Bath & Body Works, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leslie’s	1	11	0	0	1.92
Bath & Body Works	0	4	14	0	2.78

Leslie’s currently has a consensus price target of $2.27, suggesting a potential upside of 148.55%. Bath & Body Works has a consensus price target of $41.69, suggesting a potential upside of 23.61%. Given Leslie’s’ higher probable upside, analysts clearly believe Leslie’s is more favorable than Bath & Body Works.

Profitability

This table compares Leslie’s and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leslie’s	-2.13%	-6.11%	-1.08%
Bath & Body Works	12.43%	-44.03%	14.45%

Valuation & Earnings

This table compares Leslie’s and Bath & Body Works”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leslie’s	$1.32 billion	0.13	-$23.38 million	($0.24)	-3.81
Bath & Body Works	$7.31 billion	0.98	$878.00 million	$3.64	9.27

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

Summary

Bath & Body Works beats Leslie’s on 11 of the 14 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 Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.