Critical Comparison: Carter’s (NYSE:CRI) and Yue Yuen Industrial (OTCMKTS:YUEIY)

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

Dividends

Yue Yuen Industrial pays an annual dividend of $1.00 per share and has a dividend yield of 11.7%. Carter’s pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Carter’s pays out 26.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.1% of Yue Yuen Industrial shares are held by institutional investors. 2.0% of Carter’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Yue Yuen Industrial and Carter’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yue Yuen Industrial	0	0	0	0	0.00
Carter’s	3	2	0	0	1.40

Carter’s has a consensus target price of $30.25, indicating a potential upside of 4.43%. Given Carter’s’ stronger consensus rating and higher probable upside, analysts plainly believe Carter’s is more favorable than Yue Yuen Industrial.

Earnings & Valuation

This table compares Yue Yuen Industrial and Carter’s”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yue Yuen Industrial	$8.18 billion	0.34	$392.42 million	N/A	N/A
Carter’s	$2.84 billion	0.37	$185.51 million	$3.77	7.68

Yue Yuen Industrial has higher revenue and earnings than Carter’s.

Risk & Volatility

Yue Yuen Industrial has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Carter’s has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Yue Yuen Industrial and Carter’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yue Yuen Industrial	N/A	N/A	N/A
Carter’s	4.79%	20.68%	7.29%

Summary

Carter’s beats Yue Yuen Industrial on 8 of the 13 factors compared between the two stocks.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, manufactures and sells athletic, athleisure, casual, and outdoor footwear in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It retails sportswear, outdoor, and leisure products; and operates a sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and corporate management consultation services. Further, it trades in footwear. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.

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.