Ralph Lauren vs Retail Which Performs Better?

Ralph Lauren, a renowned luxury fashion brand known for its timeless designs and impeccable quality, has long been a staple in the retail industry. As a publicly traded company, its performance on the stock market is closely watched by investors and analysts alike. In comparison, retail stocks as a whole have faced challenges in recent years due to shifting consumer preferences and the rise of e-commerce. This has led to a fascinating dynamic between Ralph Lauren and the broader retail sector, showcasing the complexities of the industry and the opportunities for growth and innovation.

Ralph Lauren or Retail?

When comparing Ralph Lauren and Retail, 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 Ralph Lauren and Retail.

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. Ralph Lauren has a dividend yield of 1.38%, while Retail has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ralph Lauren reports a 5-year dividend growth of 4.78% year and a payout ratio of 28.56%. On the other hand, Retail reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.95%.

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 Ralph Lauren P/E ratio at 20.82 and Retail's P/E ratio at 8.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ralph Lauren P/B ratio is 5.83 while Retail's P/B ratio is 0.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ralph Lauren has seen a 5-year revenue growth of 0.26%, while Retail's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ralph Lauren's ROE at 27.82% and Retail's ROE at 2.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $224.97 for Ralph Lauren and $0.07 for Retail. Over the past year, Ralph Lauren's prices ranged from $134.90 to $237.16, with a yearly change of 75.80%. Retail's prices fluctuated between $0.02 and $0.13, with a yearly change of 527.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.