Leslie’s (NASDAQ:LESL) and Big Tree Cloud (NASDAQ:DSY) Head to Head Analysis

Leslie’s (NASDAQ:LESL) and Big Tree Cloud (NASDAQ:DSY) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

60.2% of Big Tree Cloud shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by insiders. Comparatively, 34.1% of Big Tree Cloud 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.

Profitability

This table compares Leslie’s and Big Tree Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leslie’s	-22.64%	N/A	-8.22%
Big Tree Cloud	N/A	N/A	N/A

Risk and Volatility

Leslie’s has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Big Tree Cloud has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Earnings & Valuation

This table compares Leslie’s and Big Tree Cloud”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leslie’s	$1.22 billion	0.02	-$236.97 million	($29.69)	-0.09
Big Tree Cloud	$2.02 million	4.68	-$32.53 million	N/A	N/A

Big Tree Cloud has lower revenue, but higher earnings than Leslie’s.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Leslie’s and Big Tree Cloud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leslie’s	2	4	1	0	1.86
Big Tree Cloud	1	0	0	0	1.00

Leslie’s currently has a consensus price target of $2.85, suggesting a potential upside of 5.95%. Given Leslie’s’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Leslie’s is more favorable than Big Tree Cloud.

Summary

Big Tree Cloud beats Leslie’s on 6 of the 11 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 Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.