Reviewing Carter’s (NYSE:CRI) and TOD’S (OTCMKTS:TDPAY)

TOD’S (OTCMKTS:TDPAY) and Carter’s (NYSE:CRI) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

1.8% of TOD’S shares are owned by institutional investors. 3.2% of Carter’s shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for TOD’S and Carter’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOD’S	0	0	0	0	0.00
Carter’s	1	3	4	1	2.56

Carter’s has a consensus price target of $41.17, indicating a potential upside of 22.41%. Given Carter’s’ stronger consensus rating and higher possible upside, analysts clearly believe Carter’s is more favorable than TOD’S.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOD’S	N/A	N/A	N/A	N/A	N/A
Carter’s	$2.90 billion	0.43	$91.80 million	$5.34	6.30

Carter’s has higher revenue and earnings than TOD’S.

Profitability

This table compares TOD’S and Carter’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOD’S	N/A	N/A	N/A
Carter’s	6.55%	12.78%	4.67%

Summary

Carter’s beats TOD’S on 9 of the 10 factors compared between the two stocks.

About TOD’S

TOD'S S.p.A., together with its subsidiaries, creates, produces, and distributes shoes, leather goods and accessories, and apparel in Italy, rest of Europe, the Americas, Greater China, and internationally. It distributes its products through directly operated single-brand stores (DOS), the e-commerce channels, franchised retail outlets, and a series of selected independent multi-brand stores under the TOD'S, HOGAN, FAY, and ROGER VIVIER brands. The company was founded in 1970 and is headquartered in Sant'Elpidio a Mare, Italy.

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.