Carter’s (NYSE: CRI) is one of 37 publicly-traded companies in the “Apparel & Accessories Retailers” industry, but how does it contrast to its rivals? We will compare Carter’s to related companies based on the strength of its earnings, dividends, valuation, analyst recommendations, risk, institutional ownership and profitability.

Volatility and Risk

Carter’s has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Carter’s’ rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Carter’s and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carter’s 0 4 8 0 2.67
Carter’s Competitors 607 3121 2923 91 2.37

Carter’s presently has a consensus price target of $101.80, suggesting a potential upside of 9.64%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 9.64%. Given Carter’s’ rivals higher probable upside, analysts clearly believe Carter’s has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Carter’s and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Carter’s $3.26 billion $494.84 million 18.24
Carter’s Competitors $3.36 billion $449.88 million 21.09

Carter’s’ rivals have higher revenue, but lower earnings than Carter’s. Carter’s is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

97.3% of Carter’s shares are owned by institutional investors. Comparatively, 75.1% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 3.1% of Carter’s shares are owned by company insiders. Comparatively, 16.7% of shares of all “Apparel & Accessories Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Carter’s and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carter’s 7.74% 33.18% 13.13%
Carter’s Competitors 1.05% -2.17% 3.73%

Dividends

Carter’s pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. Carter’s pays out 29.1% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.1% and pay out 55.5% of their earnings in the form of a dividend. Carter’s has increased its dividend for 3 consecutive years.

Summary

Carter’s beats its rivals on 8 of the 15 factors compared.

About Carter’s

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.

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