Comparing Sadot Group (NASDAQ:SDOT) & Leslie’s (NASDAQ:LESL)

Leslie’s (NASDAQ:LESL) and Sadot Group (NASDAQ:SDOT) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Insider and Institutional Ownership

13.3% of Sadot Group shares are owned by institutional investors. 0.5% of Leslie’s shares are owned by company insiders. Comparatively, 0.4% of Sadot Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Leslie’s and Sadot Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leslie’s	-22.64%	N/A	-8.22%
Sadot Group	-37.82%	-963.54%	-188.85%

Valuation and Earnings

This table compares Leslie’s and Sadot Group”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	$1.24 billion	0.04	-$236.97 million	($29.69)	-0.18
Sadot Group	$246.90 million	0.03	-$93.39 million	($299.60)	-0.04

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Leslie’s and Sadot Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leslie’s	2	4	1	0	1.86
Sadot Group	1	0	0	0	1.00

Leslie’s currently has a consensus price target of $2.85, indicating a potential downside of 46.53%. Given Leslie’s’ stronger consensus rating and higher possible upside, research analysts clearly believe Leslie’s is more favorable than Sadot Group.

Volatility & Risk

Leslie’s has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, Sadot Group has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Summary

Leslie’s beats Sadot Group on 11 of the 14 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 Sadot Group

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.