Canada Goose (NYSE:GOOS) versus Children’s Place (NASDAQ:PLCE) Critical Analysis

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

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares Canada Goose and Children’s Place”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canada Goose	$969.08 million	0.99	$68.13 million	$0.13	75.98
Children’s Place	$1.21 billion	0.06	-$88.26 million	($4.01)	-0.83

Canada Goose has higher earnings, but lower revenue 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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Canada Goose and Children’s Place, as provided by MarketBeat.com.

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

Canada Goose presently has a consensus price target of $15.17, indicating a potential upside of 53.56%. Children’s Place has a consensus price target of $3.50, indicating a potential upside of 5.74%. Given Canada Goose’s stronger consensus rating and higher possible upside, equities analysts clearly believe Canada Goose is more favorable than Children’s Place.

Summary

Canada Goose beats Children’s Place on 11 of the 14 factors compared between the two stocks.

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.

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.