Head-To-Head Comparison: LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) and Ralph Lauren (NYSE:RL)

LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) and Ralph Lauren (NYSE:RL) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LVMH-Moet Hennessy Louis Vuitton and Ralph Lauren, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LVMH-Moet Hennessy Louis Vuitton	0	5	4	4	2.92
Ralph Lauren	1	3	16	2	2.86

Ralph Lauren has a consensus target price of $347.13, indicating a potential upside of 2.12%. Given Ralph Lauren’s higher possible upside, analysts clearly believe Ralph Lauren is more favorable than LVMH-Moet Hennessy Louis Vuitton.

Institutional and Insider Ownership

0.3% of LVMH-Moet Hennessy Louis Vuitton shares are owned by institutional investors. Comparatively, 67.9% of Ralph Lauren shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

LVMH-Moet Hennessy Louis Vuitton pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. Ralph Lauren pays an annual dividend of $3.65 per share and has a dividend yield of 1.1%. Ralph Lauren pays out 27.0% of its earnings in the form of a dividend. Ralph Lauren has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares LVMH-Moet Hennessy Louis Vuitton and Ralph Lauren”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LVMH-Moet Hennessy Louis Vuitton	$91.64 billion	3.91	$13.58 billion	N/A	N/A
Ralph Lauren	$7.57 billion	2.72	$742.90 million	$13.53	25.12

LVMH-Moet Hennessy Louis Vuitton has higher revenue and earnings than Ralph Lauren.

Profitability

This table compares LVMH-Moet Hennessy Louis Vuitton and Ralph Lauren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LVMH-Moet Hennessy Louis Vuitton	N/A	N/A	N/A
Ralph Lauren	10.91%	33.72%	11.86%

Risk and Volatility

LVMH-Moet Hennessy Louis Vuitton has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Ralph Lauren has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

Ralph Lauren beats LVMH-Moet Hennessy Louis Vuitton on 9 of the 16 factors compared between the two stocks.

About LVMH-Moet Hennessy Louis Vuitton

LVMH Moët Hennessy – Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d'Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and theme park. LVMH Moët Hennessy – Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.

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.