Head to Head Analysis: PVH (PVH) versus Ralph Lauren (RL)
PVH (NYSE: PVH) and Ralph Lauren (NYSE:RL) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
This table compares PVH and Ralph Lauren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
94.4% of PVH shares are held by institutional investors. Comparatively, 67.0% of Ralph Lauren shares are held by institutional investors. 1.3% of PVH shares are held by insiders. Comparatively, 32.9% of Ralph Lauren shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Ralph Lauren pays an annual dividend of $2.00 per share and has a dividend yield of 2.1%. PVH pays out 2.2% of its earnings in the form of a dividend. Ralph Lauren pays out 206.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ralph Lauren has increased its dividend for 5 consecutive years. Ralph Lauren is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares PVH and Ralph Lauren’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PVH||$8.20 billion||1.26||$549.00 million||$6.72||19.95|
|Ralph Lauren||$6.65 billion||1.17||-$99.30 million||$0.97||99.08|
PVH has higher revenue and earnings than Ralph Lauren. PVH is trading at a lower price-to-earnings ratio than Ralph Lauren, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for PVH and Ralph Lauren, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PVH presently has a consensus price target of $143.56, indicating a potential upside of 7.10%. Ralph Lauren has a consensus price target of $88.73, indicating a potential downside of 7.68%. Given PVH’s stronger consensus rating and higher possible upside, analysts clearly believe PVH is more favorable than Ralph Lauren.
Volatility & Risk
PVH has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Ralph Lauren has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
PVH beats Ralph Lauren on 11 of the 17 factors compared between the two stocks.
PVH Corp. is an apparel company. The Company operates through three segments: Calvin Klein, which consists of the Calvin Klein North America and Calvin Klein International segments; Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments, and Heritage Brands, which consists of the Heritage Brands Wholesale and Heritage Brands Retail segments. The Company’s brand portfolio consists of various brand names, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle, which are owned, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection and Chaps, which are licensed, as well as various other licensed and private label brands. The Company designs and markets dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products and handbags, footwear and other related products.
About Ralph Lauren
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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