Leatt (OTCMKTS:LEAT) versus Accell Group (OTCMKTS:ACGPF) Critical Analysis

Insider and Institutional Ownership

32.7% of Accell Group shares are owned by institutional investors. Comparatively, 0.6% of Leatt shares are owned by institutional investors. 80.0% of Leatt shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accell Group and Leatt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accell Group	N/A	N/A	N/A
Leatt	5.56%	8.52%	7.22%

Valuation & Earnings

This table compares Accell Group and Leatt”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accell Group	N/A	N/A	N/A	$0.90	61.20
Leatt	$61.91 million	1.31	$3.26 million	$0.57	22.81

Leatt has higher revenue and earnings than Accell Group. Leatt is trading at a lower price-to-earnings ratio than Accell Group, indicating that it is currently the more affordable of the two stocks.

Summary

Leatt beats Accell Group on 5 of the 8 factors compared between the two stocks.

About Accell Group

Accell Group BV is a holding company, which engages in the design, development, production, marketing, and sale of bicycles, bicycle parts, and accessories. The firm operates through the following segments: Bikes, Parts, and Corporate. It offers products under the brands of Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe, and Carqon. The company was founded in 1904 and is headquartered in Heerenveen, the Netherlands.

About Leatt

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.