Head-To-Head Survey: Children’s Place (NASDAQ:PLCE) and Canada Goose (NYSE:GOOS)

Children’s Place (NASDAQ:PLCE) and Canada Goose (NYSE:GOOS) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Children’s Place	-7.30%	N/A	-10.79%
Canada Goose	1.35%	13.89%	4.28%

Risk & Volatility

Children’s Place has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Institutional and Insider Ownership

83.6% of Canada Goose shares are owned by institutional investors. 0.9% of Children’s Place shares are owned by company insiders. Comparatively, 0.5% of Canada Goose shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Children’s Place and Canada Goose, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Children’s Place	1	1	0	0	1.50
Canada Goose	3	4	2	0	1.89

Children’s Place currently has a consensus target price of $3.50, indicating a potential upside of 7.33%. Canada Goose has a consensus target price of $15.17, indicating a potential upside of 27.61%. Given Canada Goose’s stronger consensus rating and higher possible upside, analysts plainly believe Canada Goose is more favorable than Children’s Place.

Valuation & Earnings

This table compares Children’s Place and Canada Goose”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	0.06	-$88.26 million	($4.01)	-0.81
Canada Goose	$1.46 billion	0.79	$68.13 million	$0.13	91.42

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

Summary

Canada Goose beats Children’s Place on 12 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 Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.