Comparing Ralph Lauren Corporation (RL) & Its Peers
Ralph Lauren Corporation (NYSE: RL) is one of 26 public companies in the “Apparel & Accessories” industry, but how does it compare to its peers? We will compare Ralph Lauren Corporation to similar businesses based on the strength of its analyst recommendations, earnings, institutional ownership, profitability, risk, valuation and dividends.
Institutional and Insider Ownership
62.9% of Ralph Lauren Corporation shares are owned by institutional investors. Comparatively, 48.4% 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, 27.3% of shares of all “Apparel & Accessories” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Ralph Lauren Corporation and its peers, as provided 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||1353||1927||76||2.49|
Ralph Lauren Corporation presently has a consensus price target of $87.15, indicating a potential downside of 1.29%. As a group, “Apparel & Accessories” companies have a potential upside of 4.21%. 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.
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 peers, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Ralph Lauren Corporation and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ralph Lauren Corporation||$6.45 billion||$987.10 million||-383.87|
|Ralph Lauren Corporation Competitors||$2.68 billion||$378.34 million||-3.96|
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.
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||-1,510.85%||0.36%||-4.73%|
Volatility & Risk
Ralph Lauren Corporation has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Ralph Lauren Corporation’s peers have a beta of 0.72, suggesting that their average stock price is 28% 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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