Tefron (OTCMKTS:TFRFF – Get Free Report) and Ralph Lauren (NYSE:RL – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Dividends
Tefron pays an annual dividend of $0.12 per share and has a dividend yield of 1.9%. Ralph Lauren pays an annual dividend of $3.65 per share and has a dividend yield of 1.0%. Tefron pays out 30.0% of its earnings in the form of a dividend. Ralph Lauren pays out 27.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ralph Lauren has raised its dividend for 5 consecutive years.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Tefron and Ralph Lauren, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tefron | 0 | 0 | 0 | 0 | 0.00 |
| Ralph Lauren | 1 | 5 | 15 | 1 | 2.73 |
Institutional & Insider Ownership
67.9% of Ralph Lauren shares are owned by institutional investors. 53.3% of Tefron shares are owned by company insiders. Comparatively, 38.3% of Ralph Lauren shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Tefron and Ralph Lauren’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tefron | 4.31% | 15.13% | 7.68% |
| Ralph Lauren | 11.28% | 36.18% | 12.66% |
Risk & Volatility
Tefron has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Ralph Lauren has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
Valuation & Earnings
This table compares Tefron and Ralph Lauren”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tefron | $293.86 million | 0.27 | $15.11 million | $0.40 | 16.08 |
| Ralph Lauren | $7.08 billion | 3.10 | $742.90 million | $13.53 | 26.78 |
Ralph Lauren has higher revenue and earnings than Tefron. Tefron is trading at a lower price-to-earnings ratio than Ralph Lauren, indicating that it is currently the more affordable of the two stocks.
Summary
Ralph Lauren beats Tefron on 16 of the 18 factors compared between the two stocks.
About Tefron
Tefron Ltd. engages in the design, development, production, marketing, and sale of intimate apparel and activewear, and leisurewear worldwide. The company through Brands and Retail segments. It offers women’s intimate, and active and lounge wear; and men’s underwear, activewear, and baselayer products. Tefron Ltd. was incorporated in 1977 and is headquartered in Misgav, Israel.
About Ralph Lauren
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.
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