Reviewing Fox Factory (FOXF) and Leatt (LEAT)

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Fox Factory (NASDAQ:FOXF) and Leatt (OTCMKTS:LEAT) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Fox Factory 11.43% 29.77% 17.75%
Leatt 1.31% 3.52% 2.26%

Institutional and Insider Ownership

97.6% of Fox Factory shares are owned by institutional investors. 5.6% of Fox Factory shares are owned by company insiders. Comparatively, 40.6% of Leatt shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fox Factory and Leatt’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fox Factory $475.63 million 5.41 $43.12 million $1.59 42.58
Leatt $20.14 million 0.40 $230,000.00 N/A N/A

Fox Factory has higher revenue and earnings than Leatt.

Risk and Volatility

Fox Factory has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Leatt has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Fox Factory and Leatt, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fox Factory 0 2 4 0 2.67
Leatt 0 0 0 0 N/A

Fox Factory presently has a consensus target price of $62.40, suggesting a potential downside of 7.83%. Given Fox Factory’s higher possible upside, analysts clearly believe Fox Factory is more favorable than Leatt.

Summary

Fox Factory beats Leatt on 11 of the 12 factors compared between the two stocks.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers front fork and rear suspension products for mountain bikes and road bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, bars, stems, and seat posts, as well as aftermarket products to retailers and distributors. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Scotts Valley, California.

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, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides Leatt helmet range for head and brain protection; and Leatt body armor range, including chest protectors, body protectors, back protectors, elbow guards, shoulder braces, knee braces, knee and leg guards, kidney belts, and impact shorts for use in various activities, such as horseback riding, snowboarding, skiing, and other activities. In addition, the company offers Leatt apparel range comprising gloves, riding jackets, jerseys, bicycle shorts and pants, and off road pants, as well as casual clothing and socks; and other products, parts, and accessories, including toolbelt bags, duffel bags, gear bags, helmet bags, and hats and hydration kits. Further, it provides aftermarket support services; and acts as the original equipment manufacturer for neck braces sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs, as well as racing car drivers. It sells its products to customers through a network of distributors and retailers; and through online store under the Website leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. Leatt Corporation was incorporated in 2005 and is headquartered in Durbanville, South Africa.

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