Analyzing Phoenix Footwear Group (OTCMKTS:PXFG) and Carter’s (NYSE:CRI)

Carter’s (NYSE:CRI) and Phoenix Footwear Group (OTCMKTS:PXFG) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Valuation and Earnings

This table compares Carter’s and Phoenix Footwear Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter’s	$2.84 billion	0.34	$185.51 million	$3.77	6.98
Phoenix Footwear Group	$17.97 million	0.01	-$2.68 million	($0.18)	-0.06

Carter’s has higher revenue and earnings than Phoenix Footwear Group. Phoenix Footwear Group is trading at a lower price-to-earnings ratio than Carter’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carter’s and Phoenix Footwear Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter’s	4.79%	20.68%	7.29%
Phoenix Footwear Group	-14.91%	N/A	N/A

Risk and Volatility

Carter’s has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Phoenix Footwear Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Carter’s and Phoenix Footwear Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter’s	2	2	0	0	1.50
Phoenix Footwear Group	0	0	0	0	0.00

Carter’s presently has a consensus target price of $30.25, suggesting a potential upside of 14.93%. Given Carter’s’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Carter’s is more favorable than Phoenix Footwear Group.

Summary

Carter’s beats Phoenix Footwear Group on 11 of the 11 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 Phoenix Footwear Group

Phoenix Footwear Group, Inc. designs, develops, markets, and sells women’s footwear primarily in the United States. The company offers its products under the Trotters and SoftWalk brand names. It distributes its products through department stores, specialty and independent retail stores, mail order catalogues, and Internet retailers, as well as directly to consumers through SoftWalkshoes.com and trotters.com Websites. Phoenix Footwear Group, Inc. was founded in 1882 and is headquartered in Carlsbad, California.