Analyzing Ralph Lauren (NYSE:RL) & J-Long Group (NASDAQ:JL)

Ralph Lauren (NYSE:RL) and J-Long Group (NASDAQ:JL) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Ralph Lauren and J-Long Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralph Lauren	$8.11 billion	2.58	$941.10 million	$15.87	22.12
J-Long Group	$42.23 million	0.43	$2.77 million	N/A	N/A

Ralph Lauren has higher revenue and earnings than J-Long Group.

Volatility and Risk

Ralph Lauren has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, J-Long Group has a beta of -1.54, suggesting that its share price is 254% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Ralph Lauren and J-Long Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	0	2	16	0	2.89
J-Long Group	1	0	0	0	1.00

Ralph Lauren currently has a consensus target price of $445.67, suggesting a potential upside of 26.94%. Given Ralph Lauren’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ralph Lauren is more favorable than J-Long Group.

Institutional & Insider Ownership

67.9% of Ralph Lauren shares are held by institutional investors. 37.2% of Ralph Lauren shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ralph Lauren and J-Long Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralph Lauren	11.76%	39.10%	14.11%
J-Long Group	N/A	N/A	N/A

Summary

Ralph Lauren beats J-Long Group on 12 of the 12 factors compared between the two stocks.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.

About J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.