Comparing Greystone Logistics (OTCMKTS:GLGI) and Leslie’s (NASDAQ:LESL)

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

Valuation & Earnings

This table compares Greystone Logistics and Leslie’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Logistics	$57.87 million	0.11	$2.35 million	($0.17)	-1.35
Leslie’s	$1.24 billion	0.01	-$236.97 million	($29.66)	-0.06

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

Risk and Volatility

Greystone Logistics has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Leslie’s has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

10.3% of Greystone Logistics shares are owned by institutional investors. 0.5% of Leslie’s 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Greystone Logistics and Leslie’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Logistics	0	0	0	0	0.00
Leslie’s	2	5	0	0	1.71

Leslie’s has a consensus target price of $6.55, suggesting a potential upside of 283.04%. Given Leslie’s’ stronger consensus rating and higher probable upside, analysts plainly believe Leslie’s is more favorable than Greystone Logistics.

Profitability

This table compares Greystone Logistics and Leslie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Logistics	-11.80%	-27.34%	-11.15%
Leslie’s	-22.69%	N/A	-7.11%

Summary

Leslie’s beats Greystone Logistics on 8 of the 13 factors compared between the two stocks.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.

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.