XCel Brands (NASDAQ: XELB) and Carter's (NYSE:CRI) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
This is a breakdown of current ratings for XCel Brands and Carter's, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility and Risk
XCel Brands has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Carter's has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.
Carter's pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. XCel Brands does not pay a dividend. Carter's pays out 28.5% of its earnings in the form of a dividend. XCel Brands has increased its dividend for 4 consecutive years.
This table compares XCel Brands and Carter's’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
20.8% of XCel Brands shares are held by institutional investors. Comparatively, 97.0% of Carter's shares are held by institutional investors. 59.9% of XCel Brands shares are held by company insiders. Comparatively, 3.1% of Carter's shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares XCel Brands and Carter's’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|XCel Brands||$32.75 million||1.89||$2.73 million||$0.14||23.93|
|Carter's||$3.20 billion||1.73||$258.10 million||$5.20||22.50|
Carter's has higher revenue and earnings than XCel Brands. Carter's is trading at a lower price-to-earnings ratio than XCel Brands, indicating that it is currently the more affordable of the two stocks.
XCel Brands beats Carter's on 9 of the 17 factors compared between the two stocks.
XCel Brands Company Profile
Xcel Brands, Inc. is a brand development and media company. The Company is engaged in the design, production, licensing, marketing, and direct to consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of consumer lifestyle brands. The Company’s brand portfolio consists of the Isaac Mizrahi, Judith Ripka, H Halston, C Wonder and Highline Collective brands. The Company also manages and designs the Liz Claiborne New York brand (LCNY Brand). Isaac Mizrahi has over 150 different product categories, including sportswear, footwear, handbags, watches, eyewear, fragrance, tech accessories, intimates, bridal gowns and accessories, pet products, home and other merchandise. The Company’s Judith Ripka is a luxury jewelry brand. Wonder brand offers women’s clothing, footwear, jewelry and accessories; housewares, and home decor and gifts. The Liz Claiborne New York includes women’s apparel, footwear, outerwear and accessories.
Carter's Company Profile
Carter’s, Inc. (Carter’s) is a marketer of apparel for babies and young children in the United States and Canada. The Company owns two brand names in the children’s apparel industry, Carter’s and OshKosh B’gosh (OshKosh). The Company operates through five segments: Carter’s Retail, Carter’s Wholesale, OshKosh Retail, OshKosh Wholesale and International. Its International segment includes company-operated retail stores and online Websites, wholesale operations, and royalty income from its international licensees. It markets products for consumers, and offer various product categories, including baby, sleepwear, play clothes, and related accessories. Its multi-channel international business model – retail stores, online and wholesale – enables it to reach a range of consumers around the world. As of December 31, 2016, its channels included approximately 18,000 wholesale locations, 792 stores in the United States, 164 stores in Canada, and its Canadian and the United States Websites.
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