Hackett vs Ralph Lauren Which Performs Better?

Hackett and Ralph Lauren are both popular fashion brands known for their luxury clothing and accessories. Both companies have established a strong presence in the fashion industry, with Hackett catering to a more traditional and classic aesthetic, while Ralph Lauren is known for its preppy and sophisticated styles. Investors looking to compare the performance of these two companies may consider factors such as market trends, financial stability, and brand reputation to make informed decisions on investing in Hackett or Ralph Lauren stocks.

Hackett or Ralph Lauren?

When comparing Hackett 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 Hackett 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. Hackett has a dividend yield of 1.38%, 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. Hackett reports a 5-year dividend growth of 5.29% year and a payout ratio of 35.57%. 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 Hackett P/E ratio at 26.03 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. Hackett P/B ratio is 7.96 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, Hackett has seen a 5-year revenue growth of 0.23%, while Ralph Lauren's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hackett's ROE at 34.20% 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 $31.58 for Hackett and $224.97 for Ralph Lauren. Over the past year, Hackett's prices ranged from $20.23 to $32.83, with a yearly change of 62.28%. 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.