Comparing Camping World (NYSE:CWH) and Children’s Place (NASDAQ:PLCE)

Children’s Place (NASDAQ:PLCE) and Camping World (NYSE:CWH) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Children’s Place and Camping World”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Children’s Place	$1.13 billion	0.04	-$88.26 million	($5.99)	-0.37
Camping World	$6.37 billion	0.09	-$89.80 million	($1.55)	-3.43

Children’s Place has higher earnings, but lower revenue than Camping World. Camping World is trading at a lower price-to-earnings ratio than Children’s Place, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Children’s Place and Camping World’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Children’s Place	-11.82%	N/A	-14.84%
Camping World	-1.55%	-3.52%	-0.28%

Risk and Volatility

Children’s Place has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Camping World has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Children’s Place and Camping World, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Children’s Place	1	1	0	0	1.50
Camping World	1	1	10	0	2.75

Children’s Place currently has a consensus target price of $3.25, indicating a potential upside of 47.06%. Camping World has a consensus target price of $11.57, indicating a potential upside of 117.28%. Given Camping World’s stronger consensus rating and higher probable upside, analysts clearly believe Camping World is more favorable than Children’s Place.

Insider & Institutional Ownership

52.5% of Camping World shares are owned by institutional investors. 0.9% of Children’s Place shares are owned by insiders. Comparatively, 2.1% of Camping World shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Camping World beats Children’s Place on 11 of the 14 factors compared between the two stocks.

About Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.

About Camping World

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.