Wolverine World Wide (NYSE:WWW) versus Ralph Lauren (NYSE:RL) Head to Head Contrast

Ralph Lauren (NYSE:RL) and Wolverine World Wide (NYSE:WWW) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Ralph Lauren and Wolverine World Wide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralph Lauren	11.76%	39.10%	14.11%
Wolverine World Wide	5.55%	28.50%	7.23%

Earnings and Valuation

This table compares Ralph Lauren and Wolverine World Wide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralph Lauren	$8.11 billion	2.94	$941.10 million	$15.87	25.27
Wolverine World Wide	$1.87 billion	0.90	$95.80 million	$1.29	15.97

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

Dividends

Ralph Lauren pays an annual dividend of $4.00 per share and has a dividend yield of 1.0%. Wolverine World Wide pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Ralph Lauren pays out 25.2% of its earnings in the form of a dividend. Wolverine World Wide pays out 31.0% 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 increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Ralph Lauren and Wolverine World Wide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralph Lauren	0	2	15	0	2.88
Wolverine World Wide	0	5	5	1	2.64

Ralph Lauren currently has a consensus target price of $449.07, indicating a potential upside of 11.98%. Wolverine World Wide has a consensus target price of $23.11, indicating a potential upside of 12.17%. Given Wolverine World Wide’s higher possible upside, analysts plainly believe Wolverine World Wide is more favorable than Ralph Lauren.

Volatility & Risk

Ralph Lauren has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Wolverine World Wide has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

67.9% of Ralph Lauren shares are owned by institutional investors. Comparatively, 90.2% of Wolverine World Wide shares are owned by institutional investors. 37.2% of Ralph Lauren shares are owned by insiders. Comparatively, 1.5% of Wolverine World Wide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ralph Lauren beats Wolverine World Wide on 13 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 Wolverine World Wide

Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America. It operates through Active Group and Work Group segments. The company offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources and markets a range of footwear and apparel styles, including shoes, boots and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Merrell, Saucony, Sperry, Keds, Sweaty Betty, and Wolverine brands; and licenses under the Stride Rite brand. It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; and Wolverine branded eyewear and gloves. In addition, the company markets pigskin leather under the Wolverine Leather division; sourcing division provides consulting services related to product development, production control, quality assurance, materials procurement, compliance, and other service; and multi-brand direct-to-consumer division includes retail stores that sell footwear and apparel of its brand portfolio. Further, it sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, third-party licensees and distributors, and joint ventures; and operates brick and mortar retails stores, and e-commerce sites. Additionally, the company operates through a network of retail stores and e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is headquartered in Rockford, Michigan.