Ralph Lauren Corporation (RL) vs V.F. Corporation (VFC)

Ralph Lauren Corporation and V.F. Corporation are both Apparel Manufacturing companies. Ralph Lauren Corporation is the larger, with a market value of $21.9B against $5.7B — 3.8× the size. V.F. Corporation trades at the lower P/E: 21.2× against 23.0×. Ralph Lauren Corporation grew revenue faster over the last twelve months: 14.7% against 0.19%. Ralph Lauren Corporation has the higher net margin (11.8% vs 2.88%) and the higher return on invested capital (35.0% vs 7.87%). Both pay a dividend; V.F. Corporation yields more (2.39% vs 1.03%). Across the 23 metrics below, Ralph Lauren Corporation leads on 13 and V.F. Corporation on 10.

Valuation

Metric RL VFC Apparel Manufacturing median
P/E 22.99 21.23 17.44
P/S 2.67 0.62 0.45
P/B 8.20 3.35 1.45
Price to free cash flow 21.39 9.79 7.97
EV/EBITDA 14.97 7.01 8.45
EV/Sales 2.66 0.92 0.57
Earnings yield 4.35% 4.71% 0.00%
Free cash flow yield 4.68% 10.21% 10.15%

Profitability

Metric RL VFC Apparel Manufacturing median
Gross margin 70.27% 54.97% 48.31%
Operating margin 14.94% 6.10% 2.46%
Net margin 11.76% 2.88% (0.46%)
Free cash flow margin 12.49% 6.34% 5.26%
Return on equity 37.54% 17.94% 4.29%
Return on assets 12.76% 2.80% 0.00%
Return on invested capital 35.03% 7.87% 0.00%

Growth

Metric RL VFC Apparel Manufacturing median
Revenue growth (TTM) 14.68% 0.19% 0.02%
EPS growth (last fiscal year) 30.15% 233.33% (7.11%)
Revenue growth, 5-year CAGR 13.02% 0.78% 6.36%
Net income growth, 5-year CAGR 0.00% (8.97%) 0.00%

Health

Metric RL VFC Apparel Manufacturing median
Debt to equity 0.53 1.99 0.23
Current ratio 2.04 1.43 1.81
Net debt to EBITDA (0.43) 2.18 (0.43)

Dividend

Metric RL VFC Apparel Manufacturing median
Dividend yield 1.03% 2.39% 2.11%
Payout ratio 0.24 0.52 0.41

Size

Metric RL VFC Apparel Manufacturing median
Market cap 21.87b 5.71b 381.64m

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