Reviewing Ralph Lauren Corporation (RL) & The Competition
Ralph Lauren Corporation (NYSE: RL) is one of 26 public companies in the “Apparel & Accessories” industry, but how does it contrast to its competitors? We will compare Ralph Lauren Corporation to related companies based on the strength of its profitability, valuation, dividends, risk, institutional ownership, earnings and analyst recommendations.
Institutional & Insider Ownership
62.9% of Ralph Lauren Corporation shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Apparel & Accessories” companies are owned by institutional investors. 32.9% of Ralph Lauren Corporation shares are owned by insiders. Comparatively, 27.6% of shares of all “Apparel & Accessories” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Ralph Lauren Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.2%. Ralph Lauren Corporation pays out -869.6% of its earnings in the form of a dividend. As a group, “Apparel & Accessories” companies pay a dividend yield of 1.4% and pay out 40.9% of their earnings in the form of a dividend. Ralph Lauren Corporation has increased its dividend for 5 consecutive years. Ralph Lauren Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This is a breakdown of current recommendations and price targets for Ralph Lauren Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ralph Lauren Corporation||2||11||4||0||2.12|
|Ralph Lauren Corporation Competitors||302||1359||1928||76||2.49|
Ralph Lauren Corporation presently has a consensus target price of $87.15, indicating a potential downside of 2.60%. As a group, “Apparel & Accessories” companies have a potential upside of 6.05%. Given Ralph Lauren Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Ralph Lauren Corporation has less favorable growth aspects than its competitors.
Volatility and Risk
Ralph Lauren Corporation has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Ralph Lauren Corporation’s competitors have a beta of 0.73, indicating that their average stock price is 27% less volatile than the S&P 500.
This table compares Ralph Lauren Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ralph Lauren Corporation||-0.27%||13.80%||8.14%|
|Ralph Lauren Corporation Competitors||-1,512.44%||-11.23%||-7.75%|
Earnings and Valuation
This table compares Ralph Lauren Corporation and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ralph Lauren Corporation||$6.45 billion||$987.10 million||-389.04|
|Ralph Lauren Corporation Competitors||$2.68 billion||$378.34 million||-4.22|
Ralph Lauren Corporation has higher revenue and earnings than its competitors. Ralph Lauren Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Ralph Lauren Corporation beats its competitors on 9 of the 14 factors compared.
About Ralph Lauren Corporation
Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The Company operates through three segments: Wholesale, Retail and Licensing. Wholesale business consists of sales made to department stores and specialty stores around the world. Retail business consists of sales made directly to consumers through retail channel, which includes Company’s’ retail stores, concession-based shop-within-shops and e-commerce operations around the world. Licensing business consists of royalty-based arrangements, under which the Company licenses to unrelated third parties for specified periods the right to operate retail stores and/or to use its various trademarks in connection with the manufacture and sale of designated products, such as certain apparel, eyewear, fragrances and home furnishings.
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