Reviewing Li Ning (OTCMKTS:LNNGY) & Children’s Place (NASDAQ:PLCE)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Ning	$4.12 billion	1.50	$408.36 million	N/A	N/A
Children’s Place	$1.21 billion	0.06	-$88.26 million	($4.01)	-0.81

Li Ning has higher revenue and earnings than Children’s Place.

Analyst Ratings

This is a breakdown of current ratings and price targets for Li Ning and Children’s Place, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Ning	0	0	0	2	4.00
Children’s Place	1	1	0	0	1.50

Children’s Place has a consensus target price of $3.50, indicating a potential upside of 8.02%. Given Children’s Place’s higher probable upside, analysts clearly believe Children’s Place is more favorable than Li Ning.

Volatility and Risk

Li Ning has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Children’s Place has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Li Ning	N/A	N/A	N/A
Children’s Place	-7.30%	N/A	-10.79%

Summary

Li Ning beats Children’s Place on 7 of the 9 factors compared between the two stocks.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.

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.