Financial Analysis: Grabagun Digital (NYSE:PEW) & Children’s Place (NASDAQ:PLCE)

Grabagun Digital (NYSE:PEW) and Children’s Place (NASDAQ:PLCE) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Grabagun Digital and Children’s Place, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grabagun Digital	1	0	1	0	2.00
Children’s Place	1	2	0	0	1.67

Grabagun Digital presently has a consensus target price of $5.00, indicating a potential upside of 171.00%. Children’s Place has a consensus target price of $3.25, indicating a potential upside of 203.74%. Given Children’s Place’s higher probable upside, analysts plainly believe Children’s Place is more favorable than Grabagun Digital.

Institutional and Insider Ownership

4.8% of Grabagun Digital shares are held by institutional investors. 27.8% of Grabagun Digital shares are held by insiders. Comparatively, 0.9% of Children’s Place shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Grabagun Digital has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, Children’s Place has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Earnings and Valuation

This table compares Grabagun Digital and Children’s Place”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grabagun Digital	$101.03 million	0.54	-$2.51 million	($0.23)	-8.02
Children’s Place	$1.21 billion	0.02	-$88.26 million	($5.99)	-0.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grabagun Digital	-6.42%	-6.15%	-5.16%
Children’s Place	-11.82%	N/A	-14.84%

Summary

Grabagun Digital beats Children’s Place on 9 of the 14 factors compared between the two stocks.

About Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.

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.