Critical Comparison: Christopher & Banks (OTCMKTS:CBKCQ) versus Chico’s FAS (NYSE:CHS)

Christopher & Banks (OTCMKTS:CBKCQGet Rating) and Chico’s FAS (NYSE:CHSGet Rating) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Christopher & Banks and Chico’s FAS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Christopher & Banks $348.85 million 0.00 -$16.69 million N/A N/A
Chico’s FAS $1.81 billion 0.34 $46.22 million $0.86 5.74

Chico’s FAS has higher revenue and earnings than Christopher & Banks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Christopher & Banks and Chico’s FAS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Christopher & Banks 0 0 0 0 N/A
Chico’s FAS 0 2 0 0 2.00

Chico’s FAS has a consensus target price of $6.00, suggesting a potential upside of 21.46%.

Profitability

This table compares Christopher & Banks and Chico’s FAS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Christopher & Banks N/A N/A N/A
Chico’s FAS 5.16% 44.81% 9.13%

Insider & Institutional Ownership

83.9% of Chico’s FAS shares are held by institutional investors. 19.8% of Christopher & Banks shares are held by insiders. Comparatively, 3.6% of Chico’s FAS shares are held by 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.

Volatility and Risk

Christopher & Banks has a beta of -22.2, indicating that its stock price is 2,320% less volatile than the S&P 500. Comparatively, Chico’s FAS has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

Chico’s FAS beats Christopher & Banks on 7 of the 8 factors compared between the two stocks.

About Christopher & Banks

(Get Rating)

Christopher & Banks Corporation, together with its subsidiaries, operates as a specialty retailer of private-brand women's apparel and accessories in the United States. The company designs and sells women's apparel and accessories to customers ranging in age from 50 and older. Its stores offer women's apparel consisting of casual clothing, everyday basics, wear-to-work, leisure/active wear, and sleepwear in missy, petite, and women sizes, as well as jewelry and accessories. As of September 11, 2020, the company operated 452 stores, including 316 missy, petite, women stores; and 77 Outlet stores, 31 Christopher & Banks stores, and 28 C.J. Banks stores in its women's plus size clothing division CJ Banks in 44 states. It also operates christopherandbanks.com, an e-commerce website for its Christopher & Banks and CJ Banks brands. The company was formerly known as Braun's Fashions Corporation and changed its name to Christopher & Banks Corporation in July 2000. Christopher & Banks Corporation was founded in 1956 and is headquartered in Plymouth, Minnesota. On April 13, 2021, the voluntary petition of Christopher & Banks Corporation for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on January 13, 2021.

About Chico’s FAS

(Get Rating)

Chico's FAS, Inc. operates as an omnichannel specialty retailer of women's private branded casual-to-dressy clothing, intimates, and complementary accessories. It operates under the Chico's, White House Black Market (WHBM)and Soma brands. The Chico's brand primarily sells private branded clothing focusing on women with moderate to high household income levels. The WHBM brand sells everyday basics and denim, polished casual apparel, relaxed workwear, black and white pieces, feminine all-occasion dresses, shoes, belts, scarves, handbags, and jewelry for women. The Soma brand sells private branded lingerie, sleepwear, and loungewear products. As of January 29, 2022, it operated 1,266 stores in the United States, Puerto Rico, and the United States Virgin Islands; and 59 international franchise locations in Mexico and 2 domestic airport locations. The company also sells its products through retail stores and catalogs; and through chicos.com, chicosofftherack.com, whbm.com, and soma.com, as well as through third party channels. Chico's FAS, Inc. was incorporated in 1983 and is headquartered in Fort Myers, Florida.

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