Critical Contrast: Ted Baker (OTCMKTS:TBAKF) and Ralph Lauren (NYSE:RL)

Ralph Lauren (NYSE:RL) and Ted Baker (OTCMKTS:TBAKF) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

67.9% of Ralph Lauren shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned 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.

Earnings and Valuation

This table compares Ralph Lauren and Ted Baker”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralph Lauren	$7.29 billion	2.66	$742.90 million	$12.52	25.55
Ted Baker	N/A	N/A	N/A	N/A	N/A

Ralph Lauren has higher revenue and earnings than Ted Baker.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ralph Lauren and Ted Baker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	1	3	16	2	2.86
Ted Baker	0	0	0	0	0.00

Ralph Lauren currently has a consensus price target of $336.12, indicating a potential upside of 5.07%. Given Ralph Lauren’s stronger consensus rating and higher possible upside, research analysts clearly believe Ralph Lauren is more favorable than Ted Baker.

Profitability

This table compares Ralph Lauren and Ted Baker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralph Lauren	10.91%	33.72%	11.86%
Ted Baker	N/A	N/A	N/A

Summary

Ralph Lauren beats Ted Baker on 10 of the 10 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 Ted Baker

Ted Baker plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker brand in the United States, the United Kingdom, rest of Europe, Canada, and South Africa. The company operates through three segments: Retail, Wholesale, and Licensing. It offers various collections, including childrenswear, suiting, lingerie and nightwear, men's underwear, fragrance, skincare, eyewear, watches, luggage, jewelry and personal technology accessories, bedding, towels, wallpapers, rugs, gifting and stationery, swimwear, footwear, and toiletries. The company distributes its products through retail stores, concessions, retailers, and department stores, as well as through its e-commerce business. It operates through a network of 85 own stores, 130 concessions, and 31 outlets. Ted Baker plc was founded in 1987 and is headquartered in London, the United Kingdom.