WallStSmart

Carter’s Inc (CRI)vsUrban Outfitters Inc (URBN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Urban Outfitters Inc generates 114% more annual revenue ($6.32B vs $2.95B). URBN leads profitability with a 7.5% profit margin vs 3.1%. URBN appears more attractively valued with a PEG of 1.34. URBN earns a higher WallStSmart Score of 63/100 (C+).

CRI

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.52

URBN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: 3.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIUndervalued (+36.7%)

Margin of Safety

+36.7%

Fair Value

$59.72

Current Price

$38.19

$21.53 discount

UndervaluedFair: $59.72Overvalued
URBNUndervalued (+2.0%)

Margin of Safety

+2.0%

Fair Value

$71.98

Current Price

$71.30

$0.68 discount

UndervaluedFair: $71.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI2 strengths · Avg: 8.0/10
P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.3210/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

CRI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Market CapQuality
$1.42B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

URBN2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Free Cash FlowQuality
$-177.76M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

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

Bull Case : URBN

The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, Market Cap, Profit Margin. Thin 3.1% margins leave little buffer for downturns.

Bear Case : URBN

The primary concerns for URBN are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

URBN carries more volatility with a beta of 1.22 — expect wider price swings.

URBN is growing revenue faster at 11.4% — sustainability is the question.

CRI generates stronger free cash flow (-543,000), providing more financial flexibility.

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

Bottom Line

URBN scores higher overall (63/100 vs 50/100) and 11.4% revenue growth. CRI offers better value entry with a 36.7% margin of safety. Both earn "Buy" and "Hold" 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.

Urban Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.

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