Carter’s (NYSE: CRI) and Kate Spade & Co (NYSE:LIZ) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Earnings and Valuation
This table compares Carter’s and Kate Spade & Co’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Carter’s||$3.20 billion||1.45||$258.10 million||$5.20||18.84|
|Kate Spade & Co||N/A||N/A||N/A||N/A||N/A|
Carter’s has higher revenue and earnings than Kate Spade & Co.
Institutional and Insider Ownership
97.3% of Carter’s shares are owned by institutional investors. 3.1% of Carter’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Carter’s and Kate Spade & Co’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kate Spade & Co||0.44%||1.11%||0.43%|
This is a summary of recent ratings and recommmendations for Carter’s and Kate Spade & Co, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kate Spade & Co||0||0||0||0||N/A|
Carter’s currently has a consensus target price of $103.50, indicating a potential upside of 5.63%. Given Carter’s’ higher probable upside, analysts plainly believe Carter’s is more favorable than Kate Spade & Co.
Carter’s pays an annual dividend of $1.48 per share and has a dividend yield of 1.5%. Kate Spade & Co does not pay a dividend. Carter’s pays out 28.5% of its earnings in the form of a dividend. Kate Spade & Co has increased its dividend for 3 consecutive years.
Carter’s beats Kate Spade & Co on 9 of the 11 factors compared between the two stocks.
Carter’s, Inc. (Carter’s) is a marketer of apparel for babies and young children in the United States and Canada. The Company owns two brand names in the children’s apparel industry, Carter’s and OshKosh B’gosh (OshKosh). The Company operates through five segments: Carter’s Retail, Carter’s Wholesale, OshKosh Retail, OshKosh Wholesale and International. Its International segment includes company-operated retail stores and online Websites, wholesale operations, and royalty income from its international licensees. It markets products for consumers, and offer various product categories, including baby, sleepwear, play clothes, and related accessories. Its multi-channel international business model – retail stores, online and wholesale – enables it to reach a range of consumers around the world. As of December 31, 2016, its channels included approximately 18,000 wholesale locations, 792 stores in the United States, 164 stores in Canada, and its Canadian and the United States Websites.
About Kate Spade & Co
Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company’s kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company’s kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.
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