Financial Survey: Carter’s (NYSE:CRI) versus Kingold Jewelry (OTCMKTS:KGJI)

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

Risk and Volatility

Kingold Jewelry has a beta of 119.59, meaning that its stock price is 11,859% more volatile than the S&P 500. Comparatively, Carter’s has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kingold Jewelry and Carter’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingold Jewelry	N/A	N/A	N/A	N/A	N/A
Carter’s	$2.90 billion	0.51	$91.80 million	$5.34	7.47

Carter’s has higher revenue and earnings than Kingold Jewelry.

Profitability

This table compares Kingold Jewelry and Carter’s’ net margins, return on equity and return on assets.

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

Analyst Ratings

This is a breakdown of recent ratings for Kingold Jewelry and Carter’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingold Jewelry	0	0	0	0	0.00
Carter’s	2	3	4	0	2.22

Carter’s has a consensus target price of $41.17, indicating a potential upside of 3.21%. Given Carter’s’ stronger consensus rating and higher probable upside, analysts plainly believe Carter’s is more favorable than Kingold Jewelry.

Summary

Carter’s beats Kingold Jewelry on 7 of the 8 factors compared between the two stocks.

About Kingold Jewelry

Kingold Jewelry, Inc. designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People’s Republic of China. The company offers a range of in-house designed products, including gold necklaces, rings, earrings, bracelets, gold bars, and pendants. It also invests in gold. The company sells its products to wholesalers, distributors, and retailers under the Kingold brand. Kingold Jewelry, Inc. was founded in 2002 and is based in Wuhan, the People’s Republic of China.

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.