Apparel - Manufacturers
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VFC vs RL
Revenue, margins, valuation, and 5-year total return — side by side.
Apparel - Manufacturers
VFC vs RL — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Apparel - Manufacturers | Apparel - Manufacturers |
| Market Cap | $7.45B | $47.87B |
| Revenue (TTM) | $9.58B | $7.83B |
| Net Income (TTM) | $223M | $919M |
| Gross Margin | 53.8% | 69.6% |
| Operating Margin | 4.6% | 15.0% |
| Forward P/E | 23.1x | 21.7x |
| Total Debt | $5.37B | $2.67B |
| Cash & Equiv. | $429M | $1.92B |
VFC vs RL — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| V.F. Corporation (VFC) | 100 | 34.0 | -66.0% |
| Ralph Lauren Corpor… (RL) | 100 | 468.2 | +368.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VFC vs RL
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VFC is the clearest fit if your priority is dividends and momentum.
- 1.9% yield, vs RL's 0.9%
- +52.7% vs RL's +48.6%
RL carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 4 yrs, beta 1.50, yield 0.9%
- Rev growth 6.7%, EPS growth 19.4%, 3Y rev CAGR 4.4%
- 319.2% 10Y total return vs VFC's -45.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 6.7% revenue growth vs VFC's -9.1% | |
| Value | Lower P/E (21.7x vs 23.1x) | |
| Quality / Margins | 11.7% margin vs VFC's 2.3% | |
| Stability / Safety | Beta 1.50 vs VFC's 2.36, lower leverage | |
| Dividends | 1.9% yield, vs RL's 0.9% | |
| Momentum (1Y) | +52.7% vs RL's +48.6% | |
| Efficiency (ROA) | 11.8% ROA vs VFC's 2.1%, ROIC 20.6% vs 2.7% |
VFC vs RL — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VFC vs RL — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
RL leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VFC and RL operate at a comparable scale, with $9.6B and $7.8B in trailing revenue. RL is the more profitable business, keeping 11.7% of every revenue dollar as net income compared to VFC's 2.3%. On growth, RL holds the edge at +12.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $9.6B | $7.8B |
| EBITDAEarnings before interest/tax | $748M | $1.4B |
| Net IncomeAfter-tax profit | $223M | $919M |
| Free Cash FlowCash after capex | -$666M | $695M |
| Gross MarginGross profit ÷ Revenue | +53.8% | +69.6% |
| Operating MarginEBIT ÷ Revenue | +4.6% | +15.0% |
| Net MarginNet income ÷ Revenue | +2.3% | +11.7% |
| FCF MarginFCF ÷ Revenue | -6.9% | +8.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.5% | +12.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +76.7% | +24.7% |
Valuation Metrics
VFC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, VFC's 22.0x EV/EBITDA is more attractive than RL's 42.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $7.5B | $47.9B |
| Enterprise ValueMkt cap + debt − cash | $12.4B | $48.6B |
| Trailing P/EPrice ÷ TTM EPS | -38.90x | 30.45x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.08x | 21.72x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.65x |
| EV / EBITDAEnterprise value multiple | 22.05x | 42.21x |
| Price / SalesMarket cap ÷ Revenue | 0.78x | 6.76x |
| Price / BookPrice ÷ Book value/share | 5.03x | 8.74x |
| Price / FCFMarket cap ÷ FCF | 21.97x | 46.98x |
Profitability & Efficiency
RL leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
RL delivers a 31.8% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $13 for VFC. RL carries lower financial leverage with a 1.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to VFC's 3.61x. On the Piotroski fundamental quality scale (0–9), RL scores 8/9 vs VFC's 7/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +12.5% | +31.8% |
| ROA (TTM)Return on assets | +2.1% | +11.8% |
| ROICReturn on invested capital | +2.7% | +20.6% |
| ROCEReturn on capital employed | +3.5% | +18.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 3.61x | 1.03x |
| Net DebtTotal debt minus cash | $4.9B | $746M |
| Cash & Equiv.Liquid assets | $429M | $1.9B |
| Total DebtShort + long-term debt | $5.4B | $2.7B |
| Interest CoverageEBIT ÷ Interest expense | 3.79x | 23.25x |
Total Returns (Dividends Reinvested)
RL leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RL five years ago would be worth $26,443 today (with dividends reinvested), compared to $2,709 for VFC. Over the past 12 months, VFC leads with a +52.7% total return vs RL's +48.6%. The 3-year compound annual growth rate (CAGR) favors RL at 48.2% vs VFC's -2.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +5.5% | -2.2% |
| 1-Year ReturnPast 12 months | +52.7% | +48.6% |
| 3-Year ReturnCumulative with dividends | -7.4% | +225.3% |
| 5-Year ReturnCumulative with dividends | -72.9% | +164.4% |
| 10-Year ReturnCumulative with dividends | -45.4% | +319.2% |
| CAGR (3Y)Annualised 3-year return | -2.5% | +48.2% |
Risk & Volatility
RL leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
RL is the less volatile stock with a 1.50 beta — it tends to amplify market swings less than VFC's 2.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RL currently trades 89.9% from its 52-week high vs VFC's 86.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.36x | 1.50x |
| 52-Week HighHighest price in past year | $22.16 | $393.41 |
| 52-Week LowLowest price in past year | $11.06 | $237.83 |
| % of 52W HighCurrent price vs 52-week peak | +86.0% | +89.9% |
| RSI (14)Momentum oscillator 0–100 | 54.2 | 54.8 |
| Avg Volume (50D)Average daily shares traded | 6.0M | 532K |
Analyst Outlook
Evenly matched — VFC and RL each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VFC as "Hold" and RL as "Buy". Consensus price targets imply 21.3% upside for RL (target: $429) vs 6.3% for VFC (target: $20). For income investors, VFC offers the higher dividend yield at 1.87% vs RL's 0.89%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $20.27 | $428.75 |
| # AnalystsCovering analysts | 58 | 48 |
| Dividend YieldAnnual dividend ÷ price | +1.9% | +0.9% |
| Dividend StreakConsecutive years of raises | 0 | 4 |
| Dividend / ShareAnnual DPS | $0.36 | $3.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +1.0% |
RL leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). VFC leads in 1 (Valuation Metrics). 1 tied.
VFC vs RL: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VFC or RL a better buy right now?
For growth investors, Ralph Lauren Corporation (RL) is the stronger pick with 6.
7% revenue growth year-over-year, versus -9. 1% for V. F. Corporation (VFC). Ralph Lauren Corporation (RL) offers the better valuation at 30. 5x trailing P/E (21. 7x forward), making it the more compelling value choice. Analysts rate Ralph Lauren Corporation (RL) a "Buy" — based on 48 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — VFC or RL?
On forward P/E, Ralph Lauren Corporation is actually cheaper at 21.
7x.
03Which is the better long-term investment — VFC or RL?
Over the past 5 years, Ralph Lauren Corporation (RL) delivered a total return of +164.
4%, compared to -72. 9% for V. F. Corporation (VFC). Over 10 years, the gap is even starker: RL returned +319. 2% versus VFC's -45. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — VFC or RL?
By beta (market sensitivity over 5 years), Ralph Lauren Corporation (RL) is the lower-risk stock at 1.
50β versus V. F. Corporation's 2. 36β — meaning VFC is approximately 57% more volatile than RL relative to the S&P 500. On balance sheet safety, Ralph Lauren Corporation (RL) carries a lower debt/equity ratio of 103% versus 4% for V. F. Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — VFC or RL?
By revenue growth (latest reported year), Ralph Lauren Corporation (RL) is pulling ahead at 6.
7% versus -9. 1% for V. F. Corporation (VFC). On earnings-per-share growth, the picture is similar: V. F. Corporation grew EPS 80. 3% year-over-year, compared to 19. 4% for Ralph Lauren Corporation. Over a 3-year CAGR, RL leads at 4. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — VFC or RL?
Ralph Lauren Corporation (RL) is the more profitable company, earning 10.
5% net margin versus -2. 0% for V. F. Corporation — meaning it keeps 10. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RL leads at 13. 2% versus 3. 2% for VFC. At the gross margin level — before operating expenses — RL leads at 68. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is VFC or RL more undervalued right now?
On forward earnings alone, Ralph Lauren Corporation (RL) trades at 21.
7x forward P/E versus 23. 1x for V. F. Corporation — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RL: 21. 3% to $428. 75.
08Which pays a better dividend — VFC or RL?
All stocks in this comparison pay dividends.
V. F. Corporation (VFC) offers the highest yield at 1. 9%, versus 0. 9% for Ralph Lauren Corporation (RL).
09Is VFC or RL better for a retirement portfolio?
For long-horizon retirement investors, Ralph Lauren Corporation (RL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.
9% yield, +319. 2% 10Y return). V. F. Corporation (VFC) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RL: +319. 2%, VFC: -45. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between VFC and RL?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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