Ralph Lauren (NYSE:RL – Get Free Report) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its peers? We will compare Ralph Lauren to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.
Volatility & Risk
Ralph Lauren has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Ralph Lauren’s peers have a beta of 0.92, suggesting that their average stock price is 8% less volatile than the S&P 500.
Profitability
This table compares Ralph Lauren and its peers’ 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% |
| Ralph Lauren Competitors | -3.45% | 12.79% | 2.71% |
Insider and Institutional Ownership
67.9% of Ralph Lauren shares are owned by institutional investors. Comparatively, 54.4% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 37.2% of Ralph Lauren shares are owned by insiders. Comparatively, 15.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Ralph Lauren pays an annual dividend of $4.00 per share and has a dividend yield of 1.0%. Ralph Lauren pays out 25.2% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.6% and pay out 23.0% of their earnings in the form of a dividend. Ralph Lauren has raised its dividend for 5 consecutive years. Ralph Lauren lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation and Earnings
This table compares Ralph Lauren and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ralph Lauren | $8.11 billion | $941.10 million | 24.73 |
| Ralph Lauren Competitors | $5.67 billion | $471.75 million | 24.36 |
Ralph Lauren has higher revenue and earnings than its peers. Ralph Lauren is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Analyst Ratings
This is a breakdown of recent recommendations for Ralph Lauren and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ralph Lauren | 0 | 2 | 15 | 0 | 2.88 |
| Ralph Lauren Competitors | 1648 | 7632 | 10047 | 361 | 2.46 |
Ralph Lauren currently has a consensus price target of $449.07, suggesting a potential upside of 14.43%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 17.43%. Given Ralph Lauren’s peers higher probable upside, analysts clearly believe Ralph Lauren has less favorable growth aspects than its peers.
Summary
Ralph Lauren beats its peers on 11 of the 15 factors compared.
Ralph Lauren Company Profile
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.
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