Leatt (OTCMKTS:LEAT) and Brunswick (NYSE:BC) Critical Survey

Leatt (OTCMKTS:LEAT) and Brunswick (NYSE:BC) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Leatt and Brunswick, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leatt	0	0	0	0	0.00
Brunswick	0	9	7	0	2.44

Brunswick has a consensus target price of $72.69, indicating a potential upside of 2.21%. Given Brunswick’s stronger consensus rating and higher probable upside, analysts clearly believe Brunswick is more favorable than Leatt.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leatt	$44.03 million	1.53	-$2.20 million	$0.30	36.13
Brunswick	$5.24 billion	0.89	$130.10 million	($3.64)	-19.54

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

Volatility and Risk

Leatt has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Brunswick has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leatt	3.51%	4.90%	4.19%
Brunswick	-4.60%	10.55%	3.39%

Institutional & Insider Ownership

0.6% of Leatt shares are owned by institutional investors. Comparatively, 99.3% of Brunswick shares are owned by institutional investors. 80.0% of Leatt shares are owned by insiders. Comparatively, 0.9% of Brunswick shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Brunswick beats Leatt on 8 of the 14 factors compared between the two stocks.

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.

About Brunswick

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.