Carter’s (NYSE:CRI) vs. Perfect Moment (NASDAQ:PMNT) Head to Head Analysis

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

Profitability

This table compares Carter’s and Perfect Moment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter’s	8.11%	27.15%	9.61%
Perfect Moment	-67.38%	-513.83%	-119.38%

Volatility & Risk

Carter’s has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Perfect Moment has a beta of -3.22, indicating that its stock price is 422% less volatile than the S&P 500.

Institutional & Insider Ownership

23.0% of Perfect Moment shares are owned by institutional investors. 2.0% of Carter’s 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.

Valuation & Earnings

This table compares Carter’s and Perfect Moment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter’s	$2.81 billion	0.41	$232.50 million	$4.52	6.94
Perfect Moment	$21.31 million	0.51	-$8.72 million	($1.30)	-0.50

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

Analyst Recommendations

This is a summary of recent ratings for Carter’s and Perfect Moment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter’s	3	2	0	0	1.40
Perfect Moment	0	0	1	0	3.00

Carter’s currently has a consensus target price of $36.80, suggesting a potential upside of 17.35%. Perfect Moment has a consensus target price of $6.00, suggesting a potential upside of 818.84%. Given Perfect Moment’s stronger consensus rating and higher probable upside, analysts clearly believe Perfect Moment is more favorable than Carter’s.

Summary

Carter’s beats Perfect Moment on 9 of the 14 factors compared between the two stocks.

About Carter’s

Carter’s, Inc. engages in the business of brand marketing of young children’s apparel. It operates through the following segments: the United States (US) Retail, US Wholesale, and International. The US Retail segment includes selling products through retail stores and ecommerce websites. The US Wholesale segment focuses on wholesale partners. The International segment is involved in selling in retail stores and ecommerce websites in Canada and Mexico, and to international wholesale customers and licensees. The company was founded by William Carter in 1865 and is headquartered in Atlanta, GA.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.