Analyzing Leatt (LEAT) and Its Peers

Insider and Institutional Ownership

0.6% of Leatt shares are held by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are held by institutional investors. 80.0% of Leatt shares are held by insiders. Comparatively, 22.5% of shares of all “LEISURE&REC PRD” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Leatt has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Leatt’s rivals have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Leatt and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Leatt	$44.03 million	-$2.20 million	-225.50
Leatt Competitors	$1.54 billion	-$21.09 million	-1.40

Leatt’s rivals have higher revenue, but lower earnings than Leatt. Leatt is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Leatt and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leatt	-0.55%	-0.69%	-0.59%
Leatt Competitors	-41.61%	-78.91%	-10.65%

Summary

Leatt beats its rivals on 5 of the 9 factors compared.

Leatt Company Profile

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.