Financial Contrast: TOD’S (OTCMKTS:TDPAY) versus Carter’s (NYSE:CRI)

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

Institutional and Insider Ownership

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

Analyst Ratings

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

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

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

Valuation and Earnings

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

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

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

Profitability

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

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

Summary

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

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.

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.