Contrasting America’s Car-Mart (NASDAQ:CRMT) & Children’s Place (NASDAQ:PLCE)

Children’s Place (NASDAQ:PLCEGet Free Report) and America’s Car-Mart (NASDAQ:CRMTGet Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Children’s Place has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Children’s Place and America’s Car-Mart”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Children’s Place $1.21 billion 0.03 -$88.26 million ($4.84) -0.39
America’s Car-Mart $1.28 billion 0.01 -$139.11 million ($23.80) -0.07

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

Insider and Institutional Ownership

89.1% of America’s Car-Mart shares are owned by institutional investors. 0.9% of Children’s Place shares are owned by company insiders. Comparatively, 18.4% of America’s Car-Mart shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Children’s Place and America’s Car-Mart’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 -14.95%
America’s Car-Mart -18.21% -15.19% -4.73%

Analyst Recommendations

This is a breakdown of current recommendations for Children’s Place and America’s Car-Mart, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Children’s Place 1 1 0 0 1.50
America’s Car-Mart 1 2 0 0 1.67

Children’s Place currently has a consensus price target of $3.25, indicating a potential upside of 71.05%. America’s Car-Mart has a consensus price target of $14.00, indicating a potential upside of 733.33%. Given America’s Car-Mart’s stronger consensus rating and higher probable upside, analysts clearly believe America’s Car-Mart is more favorable than Children’s Place.

Summary

America’s Car-Mart beats Children’s Place on 7 of the 13 factors compared between the two stocks.

About Children’s Place

(Get Free Report)

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 America’s Car-Mart

(Get Free Report)

America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.

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