Comparing Leslie’s (NASDAQ:LESL) & TJX Companies (NYSE:TJX)

Leslie’s (NASDAQ:LESL) and TJX Companies (NYSE:TJX) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Leslie’s and TJX Companies’ 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%
TJX Companies	9.73%	56.56%	15.92%

Insider & Institutional Ownership

91.1% of TJX Companies shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by insiders. Comparatively, 0.2% of TJX Companies shares are owned 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.

Earnings & Valuation

This table compares Leslie’s and TJX Companies”s top-line revenue, earnings per share (EPS) 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)	-0.02
TJX Companies	$62.36 billion	2.22	$5.49 billion	$5.41	23.27

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Leslie’s and TJX Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leslie’s	2	4	1	0	1.86
TJX Companies	0	4	16	2	2.91

Leslie’s presently has a consensus target price of $2.85, suggesting a potential upside of 478.45%. TJX Companies has a consensus target price of $171.63, suggesting a potential upside of 36.35%. Given Leslie’s’ higher probable upside, equities analysts clearly believe Leslie’s is more favorable than TJX Companies.

Risk & Volatility

Leslie’s has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, TJX Companies has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

TJX Companies beats Leslie’s on 12 of the 15 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 TJX Companies

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.