Reviewing Ralph Lauren Corporation (RL) and The Competition
Ralph Lauren Corporation (NYSE: RL) is one of 26 publicly-traded companies in the “Apparel & Accessories” industry, but how does it weigh in compared to its peers? We will compare Ralph Lauren Corporation to related companies based on the strength of its profitability, earnings, analyst recommendations, risk, dividends, valuation and institutional ownership.
Earnings and Valuation
This table compares Ralph Lauren Corporation and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ralph Lauren Corporation||$6.45 billion||$987.10 million||-392.91|
|Ralph Lauren Corporation Competitors||$2.68 billion||$378.34 million||-4.30|
Ralph Lauren Corporation has higher revenue and earnings than its peers. Ralph Lauren Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
62.8% of Ralph Lauren Corporation shares are owned by institutional investors. Comparatively, 45.9% 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, 29.9% of shares of all “Apparel & Accessories” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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 peers, given its higher yield and lower payout ratio.
This is a summary of recent ratings for Ralph Lauren Corporation and its peers, 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||243||1241||1894||72||2.52|
Ralph Lauren Corporation currently has a consensus price target of $87.15, indicating a potential downside of 3.56%. As a group, “Apparel & Accessories” companies have a potential upside of 5.83%. Given Ralph Lauren Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Ralph Lauren Corporation has less favorable growth aspects than its peers.
This table compares Ralph Lauren Corporation and its peers’ 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||-1,573.04%||-7.33%||-8.23%|
Risk & Volatility
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 peers have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.
Ralph Lauren Corporation beats its peers 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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