Leatt (OTCMKTS:LEAT – Get Free Report) and Amer Sports (NYSE:AS – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Profitability
This table compares Leatt and Amer Sports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leatt | -0.55% | -0.69% | -0.59% |
| Amer Sports | 3.70% | 7.21% | 3.90% |
Valuation & Earnings
This table compares Leatt and Amer Sports”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leatt | $44.03 million | 1.31 | -$2.20 million | ($0.04) | -231.91 |
| Amer Sports | $5.18 billion | 4.11 | $72.60 million | $0.37 | 104.08 |
Amer Sports has higher revenue and earnings than Leatt. Leatt is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Leatt and Amer Sports, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leatt | 0 | 0 | 0 | 0 | 0.00 |
| Amer Sports | 0 | 4 | 11 | 1 | 2.81 |
Amer Sports has a consensus price target of $37.81, suggesting a potential downside of 1.83%. Given Amer Sports’ stronger consensus rating and higher possible upside, analysts plainly believe Amer Sports is more favorable than Leatt.
Risk and Volatility
Leatt has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Amer Sports has a beta of 3.36, indicating that its stock price is 236% more volatile than the S&P 500.
Insider and Institutional Ownership
0.6% of Leatt shares are owned by institutional investors. Comparatively, 40.3% of Amer Sports shares are owned by institutional investors. 80.0% of Leatt shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Amer Sports beats Leatt on 14 of the 15 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 Amer Sports
Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.
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