Levi Strauss & Co. (LEVI) vs Ralph Lauren Corporation (RL)

Levi Strauss & Co. and Ralph Lauren Corporation are both Apparel Manufacturing companies. Ralph Lauren Corporation is the larger, with a market value of $21.9B against $7.3B — 3.0× the size. Levi Strauss & Co. trades at the lower P/E: 12.3× against 23.0×. Ralph Lauren Corporation grew revenue faster over the last twelve months: 14.7% against 6.61%. Ralph Lauren Corporation has the higher net margin (11.8% vs 8.83%) and the higher return on invested capital (35.0% vs 17.6%). Both pay a dividend; Levi Strauss & Co. yields more (3.96% vs 1.03%). Across the 22 metrics below, Levi Strauss & Co. leads on 11 and Ralph Lauren Corporation on 11.

Valuation

Metric LEVI RL Apparel Manufacturing median
P/E 12.33 22.99 17.44
P/S 1.08 2.67 0.45
P/B 2.99 8.20 1.45
Price to free cash flow 11.22 21.39 7.97
EV/EBITDA 8.45 14.97 8.45
EV/Sales 1.24 2.66 0.57
Earnings yield 8.11% 4.35% 0.00%
Free cash flow yield 8.92% 4.68% 10.15%

Profitability

Metric LEVI RL Apparel Manufacturing median
Gross margin 62.81% 70.27% 48.31%
Operating margin 11.28% 14.94% 2.46%
Net margin 8.83% 11.76% (0.46%)
Free cash flow margin 9.64% 12.49% 5.26%
Return on equity 25.76% 37.54% 4.29%
Return on assets 8.68% 12.76% 0.00%
Return on invested capital 17.58% 35.03% 0.00%

Growth

Metric LEVI RL Apparel Manufacturing median
Revenue growth (TTM) 6.61% 14.68% 0.02%
EPS growth (last fiscal year) 178.85% 30.15% (7.11%)
Revenue growth, 5-year CAGR 7.13% 13.02% 6.36%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LEVI RL Apparel Manufacturing median
Debt to equity 0.43 0.53 0.23
Current ratio 1.63 2.04 1.81
Net debt to EBITDA 0.21 (0.43) (0.43)

Dividend

Metric LEVI RL Apparel Manufacturing median
Dividend yield 3.96% 1.03% 2.11%
Payout ratio 0.49 0.24 0.41

Size

Metric LEVI RL Apparel Manufacturing median
Market cap 7.33b 21.87b 381.64m

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