Kontoor Brands, Inc. (KTB) vs Ralph Lauren Corporation (RL)

Kontoor Brands, Inc. and Ralph Lauren Corporation are both Apparel Manufacturing companies. Ralph Lauren Corporation is the larger, with a market value of $23.8B against $4.1B — 5.8× the size. Kontoor Brands, Inc. trades at the lower P/E: 15.3× against 24.4×. Kontoor Brands, Inc. grew revenue faster over the last twelve months: 15.8% against 14.7%. Ralph Lauren Corporation has the higher net margin (11.8% vs 8.73%) and the higher return on invested capital (35.0% vs 15.7%). Both pay a dividend; Kontoor Brands, Inc. yields more (2.87% vs 0.97%). Across the 23 metrics below, Kontoor Brands, Inc. leads on 13 and Ralph Lauren Corporation on 10.

Valuation

Metric KTB RL Apparel Manufacturing median
P/E 15.26 24.42 18.31
P/S 1.33 2.84 0.45
P/B 6.58 8.71 1.45
Price to free cash flow 9.75 22.72 8.71
EV/EBITDA 10.99 15.90 9.54
EV/Sales 1.68 2.83 0.58
Earnings yield 6.55% 4.10% 0.53%
Free cash flow yield 10.26% 4.40% 8.77%

Profitability

Metric KTB RL Apparel Manufacturing median
Gross margin 54.06% 70.27% 52.52%
Operating margin 13.98% 14.94% 4.07%
Net margin 8.73% 11.76% 0.23%
Free cash flow margin 13.60% 12.49% 3.76%
Return on equity 47.98% 37.54% 7.60%
Return on assets 9.95% 12.76% 0.00%
Return on invested capital 15.74% 35.03% 2.32%

Growth

Metric KTB RL Apparel Manufacturing median
Revenue growth (TTM) 15.78% 14.68% 0.92%
EPS growth (last fiscal year) (7.11%) 30.15% (6.25%)
Revenue growth, 5-year CAGR 8.49% 13.02% 6.36%
Net income growth, 5-year CAGR 27.34% 0.00% 0.00%

Health

Metric KTB RL Apparel Manufacturing median
Debt to equity 1.85 0.53 0.23
Current ratio 1.83 2.04 1.81
Net debt to EBITDA 2.69 (0.43) (0.43)

Dividend

Metric KTB RL Apparel Manufacturing median
Dividend yield 2.87% 0.97% 1.78%
Payout ratio 0.44 0.24 0.42

Size

Metric KTB RL Apparel Manufacturing median
Market cap 4.14b 23.84b 428.83m

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