Analyzing Children’s Place (NASDAQ:PLCE) and Woolworths (OTCMKTS:WLWHY)

Children’s Place (NASDAQ:PLCE) and Woolworths (OTCMKTS:WLWHY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Valuation and Earnings

This table compares Children’s Place and Woolworths”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Children’s Place	$1.39 billion	0.12	-$57.82 million	($0.86)	-9.03
Woolworths	$4.42 billion	0.71	$134.61 million	N/A	N/A

Woolworths has higher revenue and earnings than Children’s Place.

Analyst Recommendations

This is a summary of current recommendations and price targets for Children’s Place and Woolworths, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Children’s Place	1	1	0	0	1.50
Woolworths	0	0	0	0	0.00

Children’s Place currently has a consensus price target of $8.00, indicating a potential upside of 2.96%. Given Children’s Place’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Children’s Place is more favorable than Woolworths.

Risk and Volatility

Children’s Place has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

This table compares Children’s Place and Woolworths’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Children’s Place	-2.04%	N/A	-2.45%
Woolworths	N/A	N/A	N/A

Summary

Woolworths beats Children’s Place on 5 of the 8 factors compared between the two stocks.

About Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.