Head-To-Head Survey: Centric Brands (OTCMKTS:CTRCQ) and Carter’s (OTCMKTS:CRI)

Centric Brands (OTCMKTS:CTRCQ) and Carter’s (NYSE:CRI) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Centric Brands has a beta of -0.29, indicating that its share price is 129% less volatile than the S&P 500. Comparatively, Carter’s has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Centric Brands and Carter’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centric Brands N/A N/A N/A
Carter’s 4.39% 26.85% 7.52%

Valuation and Earnings

This table compares Centric Brands and Carter’s’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centric Brands $596.60 million 0.01 -$123.77 million N/A N/A
Carter’s $3.52 billion 1.01 $263.80 million $6.46 12.65

Carter’s has higher revenue and earnings than Centric Brands.

Institutional and Insider Ownership

54.5% of Centric Brands shares are held by institutional investors. 30.1% of Centric Brands shares are held by insiders. Comparatively, 3.4% of Carter’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Centric Brands and Carter’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centric Brands 0 0 0 0 N/A
Carter’s 0 2 6 0 2.75

Carter’s has a consensus price target of $89.25, indicating a potential upside of 9.20%. Given Carter’s’ higher probable upside, analysts plainly believe Carter’s is more favorable than Centric Brands.

Summary

Carter’s beats Centric Brands on 9 of the 11 factors compared between the two stocks.

Centric Brands Company Profile

Centric Brands Inc. designs, produces, merchandises, manages, markets, and distributes kid's wear, and women's and men's accessories and apparel in North America and international markets. The company also licenses approximately 100 brands across its core product categories, including kid's, women's, and men's accessories and apparel. Its owned brands include Hudson, a designer and marketer of women's and men's branded denim and apparel; Robert Graham, an eclectic apparel and accessories brand; and SWIMS, a Scandinavian lifestyle brand for a range of footwear, apparel, and accessories. The company sells its products through its owned retail stores, e-commerce Websites, retail partners' Websites, and partner shop-in-shops, as well as to department, specialty, and mass merchant retail stores. It operates retail stores for its Robert Graham and SWIMS brands. As of May 15, 2019, the company operated 31 Robert Graham brand stores, which consisted of 19 full price stores and 12 outlet stores; and 3 SWIMS brand outlet stores, which consisted of 1 full price store and 2 outlet stores. The company was formerly known as Differential Brands Group Inc. and changed its name to Centric Brands Inc. in October 2018. Centric Brands Inc. was founded in 1987 and is based in New York, New York. On May 18, 2020, Centric Brands Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

Carter’s Company Profile

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, Precious Baby, Simple Joys, OshKosh B'gosh, 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, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; play clothes comprising knit and woven cotton apparel; sleepwear products consisting of pajamas in cotton, fleece, and ploy-jersey; and other products, including bedding and swimwear products, cribs, diaper bags, footwear, gift sets, hair accessories, jewelry and outerwear goods, paper goods, socks, and toys. The company's OshKosh brand products comprise playclothes that include denim apparel, overalls, woven bottoms, knit tops, and bodysuits for sizes newborn to 14. It also offers baby, sleepwear, outerwear, footwear, hosiery, and accessories under the OshKosh brand. In addition, the company provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid's bags and diaper bags under the Skip Hop brand. As of December 29, 2018, it operated 844 stores in the United States, 188 stores in Canada, and 42 stores in Mexico, as well as approximately 17,000 wholesale stores, including department stores, national chain stores, specialty stores, and discount retailers in the United States. The company also sells its products through e-commerce sites in the United States, Canada, and China, as well as other international wholesale accounts and licensees. The company was founded in 1865 and is headquartered in Atlanta, Georgia.

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