Analysis of Leslie (NASDAQ:LESL) and Kirkland (NASDAQ:KIRK)
from Kirkland (NASDAQ: KIRK – Get a rating) and Leslie (NASDAQ:LESL – Get a rating) are both retail/wholesale companies, but which company is better? We’ll compare the two companies based on valuation strength, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.
Profitability
This table compares the net margins, return on equity and return on assets of Kirkland and Leslie.
| Net margins | Return on equity | return on assets | |
| Kirkland’s | 2.31% | 13.86% | 3.14% |
| At Leslie’s | 9.97% | -48.04% | 15.88% |
Analyst Recommendations
This is a breakdown of recent Kirkland’s and Leslie’s ratings, provided by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Kirkland’s | 0 | 1 | 0 | 0 | 2.00 |
| At Leslie’s | 0 | 0 | ten | 0 | 3.00 |
Kirkland’s currently has a consensus target price of $12.00, indicating a potential upside of 256.08%. Leslie’s has a consensus target price of $30.30, indicating a potential upside of 111.30%. Given Kirkland’s possible higher upside, equity research analysts clearly believe that Kirkland is more favorable than Leslie’s.
Valuation and benefits
This chart compares revenue, earnings per share (EPS), and valuation of Kirkland and Leslie.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Kirkland’s | $558.18 million | 0.08 | $22.03 million | $0.83 | 4.06 |
| At Leslie’s | $1.34 billion | 1.95 | $126.63 million | $0.72 | 19.92 |
Leslie’s has higher revenues and profits than Kirkland. Kirkland’s trades at a lower price-to-earnings ratio than Leslie’s, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
77.9% of Kirkland’s shares are held by institutional investors. 7.8% of Kirkland shares are held by insiders. By comparison, 3.6% of Leslie’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Volatility and risk
Kirkland’s has a beta of 1.79, which means its stock price is 79% more volatile than the S&P 500. Comparatively, Leslie’s has a beta of 0.55, which means its stock price is 45% less volatile than the S&P 500.
Summary
Leslie’s beats Kirkland’s on 8 of the 14 factors compared between the two stocks.
Kirkland Company Profile (Get a rating)
Kirkland’s, Inc. is a specialty home furnishings retailer in the United States. The Company’s stores offer a variety of merchandise, including holiday decorations, furniture, textiles, ornamental wall hangings, decorative accessories, art, mirrors, home fragrances, lighting, flowers, household items and gifts. The Company operates its stores as Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet and The Kirkland Collection. As of January 29, 2022, the company operated 361 stores in 35 states, as well as an e-commerce website, www.kirklands.com. Kirkland’s, Inc. was founded in 1966 and is based in Brentwood, Tennessee.
Leslie’s Company Profile (Get a rating)
Leslie’s, Inc. is 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 offers pool chemicals consisting of chlorine, sanitizers, water balancers, specialty chemicals and algae control; swimming pool covers, including winter, solar and safety covers, leaf nets, cover reels and cover alternatives; pool equipment, which includes pool cleaners, pool pumps, pool filters, pool heaters and pool lights; and swimming pools, such as above ground pools, soft sided pools, above ground pool liners and equipment, ladders and rails and diving boards. The Company also provides pool maintenance products, including pool closing and opening supplies, filter cartridges, chlorine floaters, backwash and suction hoses and cleaning accessories. ; parts, such as automatic pool cleaner parts, pool filter and pool pump parts, and pool heater and heat pump parts; and products related to safety, recreation and fitness. Additionally, it provides swimming pool equipment and repair services. The company markets its products through 952 company-operated locations in 38 states and e-commerce websites. It serves residential, professional and commercial consumers. The company was founded in 1963 and is based in Phoenix, Arizona.
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