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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter’s	$2.84 billion	0.37	$185.51 million	$3.77	7.66
Yue Yuen Industrial	$8.18 billion	0.35	$392.42 million	N/A	N/A

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

Institutional and Insider Ownership

0.1% of Yue Yuen Industrial shares are owned by institutional investors. 2.0% of Carter’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Carter’s and Yue Yuen Industrial’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%
Yue Yuen Industrial	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Carter’s and Yue Yuen Industrial, as provided by MarketBeat.com.

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

Carter’s presently has a consensus price target of $30.25, indicating a potential upside of 4.69%. Given Carter’s’ stronger consensus rating and higher probable upside, equities analysts plainly believe Carter’s is more favorable than Yue Yuen Industrial.

Dividends

Carter’s pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Yue Yuen Industrial pays an annual dividend of $1.00 per share and has a dividend yield of 11.2%. Carter’s pays out 26.5% of its earnings in the form of a dividend.

Risk and Volatility

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

Summary

Carter’s beats Yue Yuen Industrial on 8 of the 13 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 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.