Head-To-Head Analysis: Leatt (OTCMKTS:LEAT) & Fox Factory (FOXF)

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Leatt (OTCMKTS:LEAT) and Fox Factory (NASDAQ:FOXF) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Leatt and Fox Factory’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leatt 4.50% 13.28% 8.45%
Fox Factory 11.43% 29.77% 17.75%

Insider and Institutional Ownership

98.2% of Fox Factory shares are owned by institutional investors. 40.6% of Leatt shares are owned by company insiders. Comparatively, 5.6% of Fox Factory shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Leatt has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Leatt and Fox Factory, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leatt 0 0 0 0 N/A
Fox Factory 0 3 3 0 2.50

Fox Factory has a consensus target price of $62.40, suggesting a potential downside of 1.34%. Given Fox Factory’s higher possible upside, analysts plainly believe Fox Factory is more favorable than Leatt.

Valuation & Earnings

This table compares Leatt and Fox Factory’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leatt $20.14 million 0.65 $230,000.00 N/A N/A
Fox Factory $475.63 million 5.05 $43.12 million $1.59 39.78

Fox Factory has higher revenue and earnings than Leatt.

Summary

Fox Factory beats Leatt on 11 of the 12 factors compared between the two stocks.

Leatt Company Profile

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides Leatt helmet range for head and brain protection; and Leatt body armor range, including chest protectors, body protectors, back protectors, elbow guards, shoulder braces, knee braces, knee and leg guards, kidney belts, and impact shorts for use in various activities, such as horseback riding, snowboarding, skiing, and other activities. In addition, the company offers Leatt apparel range comprising gloves, riding jackets, jerseys, bicycle shorts and pants, and off road pants, as well as casual clothing and socks; and other products, parts, and accessories, including toolbelt bags, duffel bags, gear bags, helmet bags, and hats and hydration kits. Further, it provides aftermarket support services; and acts as the original equipment manufacturer for neck braces sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs, as well as racing car drivers. It sells its products to customers through a network of distributors and retailers; and through online store under the Website leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. Leatt Corporation was incorporated in 2005 and is headquartered in Durbanville, South Africa.

Fox Factory Company Profile

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers front fork and rear suspension products for mountain bikes and road bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, bars, stems, and seat posts, as well as aftermarket products to retailers and distributors. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Scotts Valley, California.

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