Contrasting Ralph Lauren Corporation (RL) & The Competition
Ralph Lauren Corporation (NYSE: RL) is one of 26 publicly-traded companies in the “Apparel & Accessories” industry, but how does it contrast to its rivals? We will compare Ralph Lauren Corporation to related businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, analyst recommendations and dividends.
Insider & Institutional 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 company insiders. Comparatively, 28.7% of shares of all “Apparel & Accessories” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Ralph Lauren Corporation and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ralph Lauren Corporation||$6.45 billion||$987.10 million||-379.22|
|Ralph Lauren Corporation Competitors||$2.68 billion||$378.34 million||-3.63|
Ralph Lauren Corporation has higher revenue and earnings than its rivals. Ralph Lauren Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Ralph Lauren Corporation and its rivals’ 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%|
This is a summary of current recommendations and price targets for Ralph Lauren Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ralph Lauren Corporation||3||11||4||0||2.06|
|Ralph Lauren Corporation Competitors||240||1233||1881||72||2.52|
Ralph Lauren Corporation presently has a consensus target price of $87.15, indicating a potential downside of 0.08%. As a group, “Apparel & Accessories” companies have a potential upside of 5.44%. Given Ralph Lauren Corporation’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Ralph Lauren Corporation has less favorable growth aspects than its rivals.
Volatility & Risk
Ralph Lauren Corporation has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Ralph Lauren Corporation’s rivals have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.
Ralph Lauren Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. 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 rivals, given its higher yield and lower payout ratio.
Ralph Lauren Corporation beats its rivals on 10 of the 15 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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