Leslie’s (NASDAQ:LESL) vs. BRC (NYSE:BRCC) Financial Analysis
by Sarita Garza · The Markets DailyLeslie’s (NASDAQ:LESL – Get Free Report) and BRC (NYSE:BRCC – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Leslie’s and BRC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leslie’s | 2 | 6 | 0 | 0 | 1.75 |
| BRC | 1 | 1 | 1 | 0 | 2.00 |
Leslie’s presently has a consensus price target of $6.55, suggesting a potential upside of 183.55%. BRC has a consensus price target of $2.33, suggesting a potential upside of 111.16%. Given Leslie’s’ higher possible upside, equities research analysts clearly believe Leslie’s is more favorable than BRC.
Valuation and Earnings
This table compares Leslie’s and BRC”s gross 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 | 0.02 | -$236.97 million | ($29.66) | -0.08 |
| BRC | $398.26 million | 0.69 | -$11.91 million | ($0.14) | -7.89 |
BRC has lower revenue, but higher earnings than Leslie’s. BRC is trading at a lower price-to-earnings ratio than Leslie’s, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
16.3% of BRC shares are held by institutional investors. 0.5% of Leslie’s shares are held by insiders. Comparatively, 54.9% of BRC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Leslie’s and BRC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leslie’s | -22.69% | N/A | -7.11% |
| BRC | -2.99% | -21.46% | -5.42% |
Volatility and Risk
Leslie’s has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, BRC has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Summary
BRC beats Leslie’s on 9 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 BRC
BRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel in the United States. The company also produces media content, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders. The company offers its products through grocery, specialty stores, and other intermediaries; and company operated and franchised Black Rifle Coffee retail coffee shop locations, as well as through e-commerce. BRC Inc. was founded in 2014 and is based in Salt Lake City, Utah.