Financial Contrast: The Children’s Place (PLCE) and Its Rivals

The Children’s Place (NASDAQ: PLCE) is one of 14 publicly-traded companies in the “Family clothing stores” industry, but how does it compare to its peers? We will compare The Children’s Place to related companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Earnings and Valuation

This table compares The Children’s Place and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The Children’s Place $1.87 billion $84.69 million 15.78
The Children’s Place Competitors $8.05 billion $540.81 million 41.70

The Children’s Place’s peers have higher revenue and earnings than The Children’s Place. The Children’s Place is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for The Children’s Place and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Children’s Place 1 2 8 0 2.64
The Children’s Place Competitors 362 1823 1818 44 2.38

The Children’s Place currently has a consensus target price of $144.91, suggesting a potential upside of 16.11%. As a group, “Family clothing stores” companies have a potential downside of 3.60%. Given The Children’s Place’s stronger consensus rating and higher possible upside, research analysts clearly believe The Children’s Place is more favorable than its peers.

Dividends

The Children’s Place pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. The Children’s Place pays out 25.3% of its earnings in the form of a dividend. As a group, “Family clothing stores” companies pay a dividend yield of 2.1% and pay out 39.5% of their earnings in the form of a dividend.

Insider & Institutional Ownership

63.8% of shares of all “Family clothing stores” companies are owned by institutional investors. 3.8% of The Children’s Place shares are owned by company insiders. Comparatively, 14.6% of shares of all “Family clothing stores” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares The Children’s Place and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Children’s Place 4.53% 29.03% 15.12%
The Children’s Place Competitors 4.10% 17.57% 7.85%

Risk and Volatility

The Children’s Place has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, The Children’s Place’s peers have a beta of 0.64, suggesting that their average share price is 36% less volatile than the S&P 500.

Summary

The Children’s Place peers beat The Children’s Place on 8 of the 15 factors compared.

The Children’s Place Company Profile

The Children's Place, Inc. operates as a children's specialty apparel retailer. The company operates in two segments, The Children's Place U.S. and The Children's Place International. It sells apparel, accessories, footwear, and other items for children; and designs, contracts to manufacture, and sells merchandise under the proprietary The Children's Place, Place, and Baby Place brand names. As of February 3, 2018, the company operated 1,014 stores in the United States, Canada, and Puerto Rico; and 190 international points of distribution operated by its 7 franchise partners in 19 countries. It also sells its products through childrensplace.com, an online store. The company was formerly known as The Children's Place Retail Stores, Inc. and changed its name to The Children's Place, Inc. in June 2014. The Children's Place, Inc. was founded in 1969 and is headquartered in Secaucus, New Jersey.

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