Harley-Davidson (NYSE:HOG) and Leatt (OTCMKTS:LEAT) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Insider and Institutional Ownership
85.7% of Harley-Davidson shares are held by institutional investors. 0.6% of Harley-Davidson shares are held by company insiders. Comparatively, 40.6% of Leatt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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.
Earnings & Valuation
This table compares Harley-Davidson and Leatt’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Harley-Davidson has higher revenue and earnings than Leatt.
Volatility and Risk
Harley-Davidson has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Leatt has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Harley-Davidson and Leatt, as provided by MarketBeat.com.
||Strong Buy Ratings
Harley-Davidson presently has a consensus price target of $44.08, indicating a potential upside of 11.58%. Given Harley-Davidson’s higher probable upside, research analysts plainly believe Harley-Davidson is more favorable than Leatt.
This table compares Harley-Davidson and Leatt’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Harley-Davidson beats Leatt on 12 of the 15 factors compared between the two stocks.
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.
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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