Analyzing Carter’s (CRI) and Canada Goose (GOOS)

Carter’s (NYSE: CRI) and Canada Goose (NYSE:GOOS) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares Carter’s and Canada Goose’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carter’s 8.90% 35.46% 13.81%
Canada Goose 12.91% 41.96% 15.48%



Earnings and Valuation

This table compares Carter’s and Canada Goose’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carter’s $3.40 billion 1.49 $302.76 million $5.76 18.68
Canada Goose $307.64 million 12.07 $16.48 million $0.33 104.24

Carter’s has higher revenue and earnings than Canada Goose. Carter’s is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Carter’s and Canada Goose, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carter’s 0 4 9 0 2.69
Canada Goose 0 3 7 0 2.70

Carter’s currently has a consensus target price of $119.83, suggesting a potential upside of 11.36%. Canada Goose has a consensus target price of $33.50, suggesting a potential downside of 2.62%. Given Carter’s’ higher probable upside, equities analysts plainly believe Carter’s is more favorable than Canada Goose.

Institutional & Insider Ownership

97.5% of Carter’s shares are held by institutional investors. Comparatively, 28.0% of Canada Goose shares are held by institutional investors. 3.1% of Carter’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Carter’s pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. Canada Goose does not pay a dividend. Carter’s pays out 31.3% of its earnings in the form of a dividend. Carter’s has increased its dividend for 4 consecutive years.

Summary

Carter’s beats Canada Goose on 9 of the 16 factors compared between the two stocks.

About Carter’s

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, Child of Mine, Just One You, Precious Firsts, Simple Joys, OshKosh, Skip Hop, and other brands. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include baby products, such as bodysuits, pants, dresses, multi-piece sets, blankets, layette essentials, bibs, and booties; play clothes products comprising knit and woven cotton apparel; sleepwear products consisting of pajamas in cotton, fleece, and ploy-jersey; and other products, including bedding, outerwear, swimwear, footwear, socks, diaper bags, gift sets, toys, jewelry, cribs, paper goods, and hair accessories. The company's OshKosh brand products comprise playclothes products that include denim, overalls, woven bottoms, knit tops, bodysuits, and other playclothes for sizes newborn to 14. It also offers baby, sleepwear, outerwear, footwear, hosiery, and accessories under the OshKosh brand. The company distributes its products through department stores, chain and specialty stores, and discount retailers, as well as company-operated stores, and Websites. As of December 30, 2017, it operated 466 Carter's and 131 OshKosh stand-alone stores in the United States; 159 side-by-side and 74 co-branded stores in the United States; and 179 co-branded stores in Canada. The company was founded in 1865 and is headquartered in Atlanta, Georgia.

About Canada Goose

Canada Goose Holdings Inc. designs, manufactures, and sells premium outdoor apparel for men, women, youth, children, and babies in Canada, the United States, and internationally. The company operates in two segments, Wholesale and Direct to Consumer. It offers parkas, jackets, shells, vests, knitwear, and accessories for fall, winter, and spring seasons. The company sells its products through online retailers and distributors; and its e-commerce sites and retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.

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