WallStSmart

Carter’s Inc (CRI)vsRoss Stores Inc (ROST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 685% more annual revenue ($22.75B vs $2.90B). ROST leads profitability with a 9.4% profit margin vs 3.2%. CRI appears more attractively valued with a PEG of 2.01. ROST earns a higher WallStSmart Score of 56/100 (C).

CRI

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 8.0Quality: 5.0

ROST

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$33.40

Current Price

$34.93

$1.53 premium

UndervaluedFair: $33.40Overvalued
ROSTSignificantly Overvalued (-15.8%)

Margin of Safety

-15.8%

Fair Value

$166.32

Current Price

$216.03

$49.71 premium

UndervaluedFair: $166.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
13.5x8/10

Attractively priced relative to earnings

ROST3 strengths · Avg: 9.7/10
Return on EquityProfitability
36.7%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Market CapQuality
$70.18B9/10

Large-cap with strong market position

Areas to Watch

CRI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

EPS GrowthGrowth
4.0%4/10

4.0% earnings growth

Market CapQuality
$1.25B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

ROST3 concerns · Avg: 3.3/10
P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.2x4/10

Trading at 11.2x book value

PEG RatioValuation
3.112/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

The strongest argument for CRI centers on Price/Book, P/E Ratio.

Bull Case : ROST

The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, EPS Growth, Market Cap. Thin 3.2% margins leave little buffer for downturns.

Bear Case : ROST

The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

CRI carries more volatility with a beta of 1.05 — expect wider price swings.

ROST is growing revenue faster at 12.2% — sustainability is the question.

ROST generates stronger free cash flow (921M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ROST scores higher overall (56/100 vs 53/100) and 12.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Carter’s Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

Ross Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

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