Financial Comparison: Leatt (LEAT) versus Harley-Davidson (HOG)

Leatt (OTCMKTS:LEAT) and Harley-Davidson (NYSE:HOG) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Leatt has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Leatt and Harley-Davidson, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leatt 0 0 0 0 N/A
Harley-Davidson 2 7 4 0 2.15

Harley-Davidson has a consensus target price of $44.08, indicating a potential upside of 10.51%. Given Harley-Davidson’s higher probable upside, analysts clearly believe Harley-Davidson is more favorable than Leatt.

Insider & Institutional Ownership

87.8% of Harley-Davidson shares are owned by institutional investors. 40.6% of Leatt shares are owned by company insiders. Comparatively, 0.6% of Harley-Davidson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Harley-Davidson pays an annual dividend of $1.48 per share and has a dividend yield of 3.7%. Leatt does not pay a dividend. Harley-Davidson pays out 42.3% of its earnings in the form of a dividend. Harley-Davidson has increased its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Leatt and Harley-Davidson’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leatt $20.14 million 0.66 $230,000.00 N/A N/A
Harley-Davidson $5.65 billion 1.15 $521.75 million $3.50 11.40

Harley-Davidson has higher revenue and earnings than Leatt.

Profitability

This table compares Leatt and Harley-Davidson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leatt 4.50% 13.28% 8.45%
Harley-Davidson 9.30% 33.57% 6.63%

Summary

Harley-Davidson beats Leatt on 11 of the 15 factors compared between the two stocks.

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, 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.

Harley-Davidson Company Profile

Harley-Davidson, Inc. primarily manufactures and sells cruiser and touring motorcycles. The company operates in two segments, Motorcycles & Related Products, and Financial Services. The Motorcycles & Related Products segment designs, manufactures, and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise, and related services. It offers motorcycle parts and accessories, such as replacement parts, and mechanical and cosmetic accessories; and general merchandise, including MotorClothes apparel and riding gear, as well as licenses the Harley-Davidson name and other trademarks. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. The Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and motorcycle parts and accessories; and retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products comprising motorcycle insurance, extended service contracts, and motorcycle maintenance protection. This segment also licenses the Harley-Davidson brand to third-party financial institutions. The company was founded in 1903 and is based in Milwaukee, Wisconsin.

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