High Tide (NASDAQ:HITI) and Leslie’s (NASDAQ:LESL) Head-To-Head Comparison

High Tide (NASDAQ:HITI) and Leslie’s (NASDAQ:LESL) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Risk & Volatility

High Tide has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Institutional and Insider Ownership

4.5% of High Tide shares are held by institutional investors. 12.4% of High Tide shares are held by insiders. Comparatively, 0.5% of Leslie’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares High Tide and Leslie’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$425.10 million	0.55	-$36.23 million	($0.23)	-11.43
Leslie’s	$1.18 billion	0.00	-$236.97 million	($27.08)	-0.00

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

Analyst Ratings

This is a summary of recent recommendations and price targets for High Tide and Leslie’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	0	2.50
Leslie’s	2	4	1	0	1.86

High Tide presently has a consensus target price of $5.62, suggesting a potential upside of 113.88%. Leslie’s has a consensus target price of $2.85, suggesting a potential upside of 2,694.12%. Given Leslie’s’ higher probable upside, analysts plainly believe Leslie’s is more favorable than High Tide.

Profitability

This table compares High Tide and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	-4.73%	5.13%	1.55%
Leslie’s	-21.24%	N/A	-8.96%

Summary

High Tide beats Leslie’s on 10 of the 14 factors compared between the two stocks.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.

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.