Head to Head Comparison: Ralph Lauren (NYSE:RL) versus Teijin (OTCMKTS:TINLY)

Ralph Lauren (NYSE:RL) and Teijin (OTCMKTS:TINLY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Risk and Volatility

Ralph Lauren has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Dividends

Ralph Lauren pays an annual dividend of $3.65 per share and has a dividend yield of 1.0%. Teijin pays an annual dividend of $0.19 per share and has a dividend yield of 1.8%. Ralph Lauren pays out 24.8% of its earnings in the form of a dividend. Teijin pays out -9.3% 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. Teijin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Ralph Lauren and Teijin”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	3.01	$742.90 million	$14.69	23.96
Teijin	$6.60 billion	0.30	$187.09 million	($2.05)	-5.02

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

Insider and Institutional Ownership

67.9% of Ralph Lauren shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Ralph Lauren and Teijin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	1	3	15	1	2.80
Teijin	0	0	0	0	0.00

Ralph Lauren presently has a consensus price target of $388.19, suggesting a potential upside of 10.27%. Given Ralph Lauren’s stronger consensus rating and higher possible upside, research analysts clearly believe Ralph Lauren is more favorable than Teijin.

Profitability

This table compares Ralph Lauren and Teijin’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%
Teijin	N/A	N/A	N/A

Summary

Ralph Lauren beats Teijin on 16 of the 18 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 Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.