Contrasting Savers Value Village (NYSE:SVV) and Ralph Lauren (NYSE:RL)

Ralph Lauren (NYSE:RL) and Savers Value Village (NYSE:SVV) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Valuation and Earnings

This table compares Ralph Lauren and Savers Value Village”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralph Lauren	$7.08 billion	3.02	$742.90 million	$14.69	24.03
Savers Value Village	$1.71 billion	0.75	$22.64 million	$0.14	58.96

Ralph Lauren has higher revenue and earnings than Savers Value Village. Ralph Lauren is trading at a lower price-to-earnings ratio than Savers Value Village, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ralph Lauren and Savers Value Village, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	1	3	16	0	2.75
Savers Value Village	1	2	4	1	2.63

Ralph Lauren currently has a consensus price target of $399.38, suggesting a potential upside of 13.14%. Savers Value Village has a consensus price target of $14.14, suggesting a potential upside of 71.35%. Given Savers Value Village’s higher possible upside, analysts plainly believe Savers Value Village is more favorable than Ralph Lauren.

Profitability

This table compares Ralph Lauren and Savers Value Village’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralph Lauren	11.73%	37.97%	13.40%
Savers Value Village	1.29%	12.51%	2.70%

Insider and Institutional Ownership

67.9% of Ralph Lauren shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned by company insiders. Comparatively, 3.1% of Savers Value Village shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Ralph Lauren has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Summary

Ralph Lauren beats Savers Value Village on 11 of the 15 factors compared between the two stocks.

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.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.