Reviewing YETI (NYSE:YETI) and Pool (NASDAQ:POOL)

YETI (NYSE:YETI) and Pool (NASDAQ:POOL) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares YETI and Pool”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YETI	$1.83 billion	1.63	$175.69 million	$2.08	17.27
Pool	$5.31 billion	2.17	$434.33 million	$10.84	28.48

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

Risk and Volatility

YETI has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Pool has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

99.0% of Pool shares are owned by institutional investors. 0.9% of YETI shares are owned by insiders. Comparatively, 3.0% of Pool shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares YETI and Pool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YETI	9.59%	26.48%	15.69%
Pool	7.79%	30.99%	11.51%

Analyst Recommendations

This is a summary of recent recommendations for YETI and Pool, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YETI	0	10	5	0	2.33
Pool	0	5	2	0	2.29

YETI currently has a consensus price target of $39.47, indicating a potential upside of 9.87%. Pool has a consensus price target of $342.14, indicating a potential upside of 10.84%. Given Pool’s higher possible upside, analysts clearly believe Pool is more favorable than YETI.

Summary

Pool beats YETI on 9 of the 14 factors compared between the two stocks.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.