Arkema vs Carter's Which Is a Better Investment?

Arkema and Carter's are two companies operating in very different industries. Arkema is a global chemical company that produces a wide range of products, from chemicals and plastics to high-performance materials. On the other hand, Carter's is a major player in the children's clothing market, known for its popular brands such as OshKosh B'gosh and Carter's. Despite their differences, both companies are publicly traded and investors may be interested in comparing their stocks to make informed investment decisions.

Arkema or Carter's?

When comparing Arkema and Carter's, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Arkema and Carter's.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Arkema has a dividend yield of 3.99%, while Carter's has a dividend yield of 7.79%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Arkema reports a 5-year dividend growth of 6.05% year and a payout ratio of 73.48%. On the other hand, Carter's reports a 5-year dividend growth of 9.86% year and a payout ratio of 62.63%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Arkema P/E ratio at 18.26 and Carter's's P/E ratio at 7.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Arkema P/B ratio is 0.92 while Carter's's P/B ratio is 1.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Arkema has seen a 5-year revenue growth of 0.06%, while Carter's's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Arkema's ROE at 5.04% and Carter's's ROE at 22.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $85.68 for Arkema and $40.37 for Carter's. Over the past year, Arkema's prices ranged from $71.26 to $111.79, with a yearly change of 56.88%. Carter's's prices fluctuated between $40.37 and $88.03, with a yearly change of 118.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.