K Swiss (KSWS) versus Ralph Lauren (RL) Head-To-Head Comparison
K Swiss (NASDAQ: KSWS) and Ralph Lauren (NYSE:RL) are both apparel & accessories – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
This is a breakdown of recent ratings and target prices for K Swiss and Ralph Lauren, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ralph Lauren has a consensus target price of $88.73, suggesting a potential downside of 7.37%. Given Ralph Lauren’s higher probable upside, analysts plainly believe Ralph Lauren is more favorable than K Swiss.
This table compares K Swiss and Ralph Lauren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares K Swiss and Ralph Lauren’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ralph Lauren||$6.65 billion||1.17||-$99.30 million||$0.96||99.78|
K Swiss has higher earnings, but lower revenue than Ralph Lauren. K Swiss is trading at a lower price-to-earnings ratio than Ralph Lauren, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
K Swiss has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Ralph Lauren has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Ralph Lauren pays an annual dividend of $2.00 per share and has a dividend yield of 2.1%. K Swiss does not pay a dividend. Ralph Lauren pays out 208.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. K Swiss has raised its dividend for 5 consecutive years.
Insider and Institutional Ownership
67.0% of Ralph Lauren shares are held by institutional investors. 32.9% of Ralph Lauren shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Ralph Lauren beats K Swiss on 10 of the 13 factors compared between the two stocks.
About K Swiss
K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.
About Ralph Lauren
Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The Company operates through three segments: Wholesale, Retail and Licensing. Wholesale business consists of sales made to department stores and specialty stores around the world. Retail business consists of sales made directly to consumers through retail channel, which includes Company’s’ retail stores, concession-based shop-within-shops and e-commerce operations around the world. Licensing business consists of royalty-based arrangements, under which the Company licenses to unrelated third parties for specified periods the right to operate retail stores and/or to use its various trademarks in connection with the manufacture and sale of designated products, such as certain apparel, eyewear, fragrances and home furnishings.
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