Carter's vs Arkema Which Offers More Value?

Carter's Inc. is a leading apparel company specializing in children's clothing, with a strong presence in the retail market. On the other hand, Arkema SA is a global chemical company that produces a wide range of chemicals and materials. Both companies operate in different sectors, with Carter's focusing on consumer goods and Arkema on industrial products. Investors looking at these stocks should consider their respective industries, growth prospects, and financial performances to make informed investment decisions.

Carter's or Arkema?

When comparing Carter's and Arkema, 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 Carter's and Arkema.

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. Carter's has a dividend yield of 5.96%, while Arkema has a dividend yield of 4.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carter's reports a 5-year dividend growth of 10.76% year and a payout ratio of 49.82%. On the other hand, Arkema reports a 5-year dividend growth of 4.93% year and a payout ratio of 73.48%.

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 Carter's P/E ratio at 8.09 and Arkema's P/E ratio at 17.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carter's P/B ratio is 2.25 while Arkema's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carter's has seen a 5-year revenue growth of 0.07%, while Arkema's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carter's's ROE at 27.71% and Arkema's ROE at 5.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.41 for Carter's and $82.27 for Arkema. Over the past year, Carter's's prices ranged from $50.27 to $88.03, with a yearly change of 75.11%. Arkema's prices fluctuated between $79.57 and $114.15, with a yearly change of 43.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.