PVH Corp. (PVH) vs Ralph Lauren Corporation (RL)

PVH Corp. and Ralph Lauren Corporation are both Apparel Manufacturing companies. Ralph Lauren Corporation is the larger, with a market value of $21.9B against $3.7B — 5.8× the size. PVH Corp. has negative trailing earnings, so its P/E is not meaningful; Ralph Lauren Corporation trades at 23.0×. Ralph Lauren Corporation grew revenue faster over the last twelve months: 14.7% against 1.64%. Ralph Lauren Corporation has the higher net margin (11.8% vs −1.89%) and the higher return on invested capital (35.0% vs 3.74%). Both pay a dividend; Ralph Lauren Corporation yields more (1.03% vs 0.18%). Across the 21 metrics below, Ralph Lauren Corporation leads on 14 and PVH Corp. on 7.

Valuation

Metric PVH RL Apparel Manufacturing median
P/E n/m 22.99 17.44
P/S 0.42 2.67 0.45
P/B 0.78 8.20 1.45
Price to free cash flow 4.97 21.39 7.97
EV/EBITDA 4.75 14.97 8.45
EV/Sales 0.56 2.66 0.57
Earnings yield (4.56%) 4.35% 0.00%
Free cash flow yield 20.11% 4.68% 10.15%

Profitability

Metric PVH RL Apparel Manufacturing median
Gross margin 58.78% 70.27% 48.31%
Operating margin 4.07% 14.94% 2.46%
Net margin (1.89%) 11.76% (0.46%)
Free cash flow margin 8.44% 12.49% 5.26%
Return on equity (3.50%) 37.54% 4.29%
Return on assets (1.47%) 12.76% 0.00%
Return on invested capital 3.74% 35.03% 0.00%

Growth

Metric PVH RL Apparel Manufacturing median
Revenue growth (TTM) 1.64% 14.68% 0.02%
EPS growth (last fiscal year) (95.08%) 30.15% (7.11%)
Revenue growth, 5-year CAGR 4.64% 13.02% 6.36%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PVH RL Apparel Manufacturing median
Debt to equity 0.47 0.53 0.23
Current ratio 1.65 2.04 1.81
Net debt to EBITDA 1.10 (0.43) (0.43)

Dividend

Metric PVH RL Apparel Manufacturing median
Dividend yield 0.18% 1.03% 2.11%
Payout ratio — 0.24 0.41

Size

Metric PVH RL Apparel Manufacturing median
Market cap 3.74b 21.87b 381.64m

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