Guess' vs Ralph Lauren Which Should You Buy?

Both 'Guess' and Ralph Lauren are well-known fashion brands with a strong presence in the retail market. While 'Guess' is known for its trendy and youthful designs, Ralph Lauren is revered for its classic and sophisticated style. When comparing the stocks of these two companies, investors look at factors such as revenue growth, brand reputation, and profitability. By analyzing these metrics, investors can determine which stock offers better investment potential for their portfolio.

Guess' or Ralph Lauren?

When comparing Guess' and Ralph Lauren, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Guess' and Ralph Lauren.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Guess' has a dividend yield of 22.5%, while Ralph Lauren has a dividend yield of 1.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Guess' reports a 5-year dividend growth of 4.56% year and a payout ratio of 135.90%. On the other hand, Ralph Lauren reports a 5-year dividend growth of 4.78% year and a payout ratio of 28.56%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Guess' P/E ratio at 5.75 and Ralph Lauren's P/E ratio at 20.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Guess' P/B ratio is 1.73 while Ralph Lauren's P/B ratio is 5.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Guess' has seen a 5-year revenue growth of 0.58%, while Ralph Lauren's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Guess''s ROE at 24.70% and Ralph Lauren's ROE at 27.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.96 for Guess' and $224.97 for Ralph Lauren. Over the past year, Guess''s prices ranged from $14.96 to $33.50, with a yearly change of 123.86%. Ralph Lauren's prices fluctuated between $134.90 and $237.16, with a yearly change of 75.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.