Children’s Place (NASDAQ:PLCE – Get Free Report) and America’s Car-Mart (NASDAQ:CRMT – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Children’s Place and America’s Car-Mart, as reported by MarketBeat.com.
| 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 presently has a consensus target price of $3.25, indicating a potential upside of 61.69%. America’s Car-Mart has a consensus target price of $14.00, indicating a potential upside of 686.52%. Given America’s Car-Mart’s stronger consensus rating and higher possible upside, analysts plainly believe America’s Car-Mart is more favorable than Children’s Place.
Risk & Volatility
Earnings & Valuation
This table compares Children’s Place and America’s Car-Mart”s 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) | -0.34 |
| 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.
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 | -14.84% |
| America’s Car-Mart | -18.21% | -15.19% | -4.73% |
Institutional & Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
America’s Car-Mart beats Children’s Place on 7 of the 13 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 America’s Car-Mart
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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