Seek Returns logo

GM vs. RL: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at GM and RL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGMRL
Company NameGeneral Motors CompanyRalph Lauren Corporation
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryAutomobilesTextiles, Apparel & Luxury Goods
Market Capitalization54.05 billion USD17.34 billion USD
ExchangeNYSENYSE
Listing DateNovember 18, 2010June 12, 1997
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GM and RL by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

GM vs. RL: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGMRL
5-Day Price Return0.62%-1.44%
13-Week Price Return13.47%3.08%
26-Week Price Return18.54%2.76%
52-Week Price Return24.06%71.38%
Month-to-Date Return6.43%-4.19%
Year-to-Date Return6.57%23.92%
10-Day Avg. Volume6.28M0.84M
3-Month Avg. Volume9.85M0.75M
3-Month Volatility33.97%28.75%
Beta1.361.65

Profitability

Return on Equity (TTM)

GM

7.21%

Automobiles Industry

Max
25.70%
Q3
12.88%
Median
6.92%
Q1
0.71%
Min
-15.89%

GM’s Return on Equity of 7.21% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

RL

29.90%

Textiles, Apparel & Luxury Goods Industry

Max
53.33%
Q3
26.13%
Median
18.47%
Q1
7.99%
Min
-10.49%

In the upper quartile for the Textiles, Apparel & Luxury Goods industry, RL’s Return on Equity of 29.90% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GM vs. RL: A comparison of their Return on Equity (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Net Profit Margin (TTM)

GM

2.54%

Automobiles Industry

Max
9.92%
Q3
5.78%
Median
3.23%
Q1
0.11%
Min
-5.31%

GM’s Net Profit Margin of 2.54% is aligned with the median group of its peers in the Automobiles industry. This indicates its ability to convert revenue into profit is typical for the sector.

RL

10.49%

Textiles, Apparel & Luxury Goods Industry

Max
23.35%
Q3
13.49%
Median
8.45%
Q1
4.18%
Min
-3.90%

RL’s Net Profit Margin of 10.49% is aligned with the median group of its peers in the Textiles, Apparel & Luxury Goods industry. This indicates its ability to convert revenue into profit is typical for the sector.

GM vs. RL: A comparison of their Net Profit Margin (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Operating Profit Margin (TTM)

GM

3.42%

Automobiles Industry

Max
13.07%
Q3
7.22%
Median
5.29%
Q1
0.43%
Min
-4.46%

GM’s Operating Profit Margin of 3.42% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.

RL

13.17%

Textiles, Apparel & Luxury Goods Industry

Max
29.47%
Q3
20.87%
Median
13.00%
Q1
7.02%
Min
-3.59%

RL’s Operating Profit Margin of 13.17% is around the midpoint for the Textiles, Apparel & Luxury Goods industry, indicating that its efficiency in managing core business operations is typical for the sector.

GM vs. RL: A comparison of their Operating Profit Margin (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Profitability at a Glance

SymbolGMRL
Return on Equity (TTM)7.21%29.90%
Return on Assets (TTM)1.67%10.78%
Net Profit Margin (TTM)2.54%10.49%
Operating Profit Margin (TTM)3.42%13.17%
Gross Profit Margin (TTM)10.97%68.55%

Financial Strength

Current Ratio (MRQ)

GM

1.22

Automobiles Industry

Max
2.19
Q3
1.54
Median
1.26
Q1
1.09
Min
0.48

GM’s Current Ratio of 1.22 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

RL

1.78

Textiles, Apparel & Luxury Goods Industry

Max
3.91
Q3
2.49
Median
1.89
Q1
1.43
Min
0.80

RL’s Current Ratio of 1.78 aligns with the median group of the Textiles, Apparel & Luxury Goods industry, indicating that its short-term liquidity is in line with its sector peers.

GM vs. RL: A comparison of their Current Ratio (MRQ) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GM

2.05

Automobiles Industry

Max
2.34
Q3
1.13
Median
0.58
Q1
0.28
Min
0.06

GM’s leverage is in the upper quartile of the Automobiles industry, with a Debt-to-Equity Ratio of 2.05. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

RL

0.54

Textiles, Apparel & Luxury Goods Industry

Max
2.67
Q3
1.29
Median
0.59
Q1
0.24
Min
0.00

RL’s Debt-to-Equity Ratio of 0.54 is typical for the Textiles, Apparel & Luxury Goods industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GM vs. RL: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Interest Coverage Ratio (TTM)

GM

25.00

Automobiles Industry

Max
77.87
Q3
42.86
Median
13.88
Q1
2.13
Min
-49.07

GM’s Interest Coverage Ratio of 25.00 is positioned comfortably within the norm for the Automobiles industry, indicating a standard and healthy capacity to cover its interest payments.

RL

85.38

Textiles, Apparel & Luxury Goods Industry

Max
57.00
Q3
35.85
Median
9.20
Q1
4.29
Min
-32.49

With an Interest Coverage Ratio of 85.38, RL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Textiles, Apparel & Luxury Goods industry. This stems from either robust earnings or a conservative debt load.

GM vs. RL: A comparison of their Interest Coverage Ratio (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Financial Strength at a Glance

SymbolGMRL
Current Ratio (MRQ)1.221.78
Quick Ratio (MRQ)1.051.29
Debt-to-Equity Ratio (MRQ)2.050.54
Interest Coverage Ratio (TTM)25.0085.38

Growth

Revenue Growth

GM vs. RL: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GM vs. RL: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GM

1.17%

Automobiles Industry

Max
10.71%
Q3
5.39%
Median
3.14%
Q1
0.00%
Min
0.00%

GM’s Dividend Yield of 1.17% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

RL

1.16%

Textiles, Apparel & Luxury Goods Industry

Max
6.59%
Q3
3.60%
Median
2.59%
Q1
0.95%
Min
0.00%

RL’s Dividend Yield of 1.16% is consistent with its peers in the Textiles, Apparel & Luxury Goods industry, providing a dividend return that is standard for its sector.

GM vs. RL: A comparison of their Dividend Yield (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Dividend Payout Ratio (TTM)

GM

6.61%

Automobiles Industry

Max
114.43%
Q3
59.30%
Median
37.15%
Q1
16.40%
Min
0.00%

GM’s Dividend Payout Ratio of 6.61% is in the lower quartile for the Automobiles industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

RL

27.07%

Textiles, Apparel & Luxury Goods Industry

Max
195.44%
Q3
106.47%
Median
58.77%
Q1
36.52%
Min
0.00%

RL’s Dividend Payout Ratio of 27.07% is in the lower quartile for the Textiles, Apparel & Luxury Goods industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

GM vs. RL: A comparison of their Dividend Payout Ratio (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Dividend at a Glance

SymbolGMRL
Dividend Yield (TTM)1.17%1.16%
Dividend Payout Ratio (TTM)6.61%27.07%

Valuation

Price-to-Earnings Ratio (TTM)

GM

11.38

Automobiles Industry

Max
27.69
Q3
19.99
Median
9.85
Q1
6.60
Min
4.25

GM’s P/E Ratio of 11.38 is within the middle range for the Automobiles industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RL

23.39

Textiles, Apparel & Luxury Goods Industry

Max
63.29
Q3
34.64
Median
18.01
Q1
13.88
Min
6.04

RL’s P/E Ratio of 23.39 is within the middle range for the Textiles, Apparel & Luxury Goods industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GM vs. RL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Price-to-Sales Ratio (TTM)

GM

0.29

Automobiles Industry

Max
1.52
Q3
0.84
Median
0.41
Q1
0.23
Min
0.08

GM’s P/S Ratio of 0.29 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RL

2.45

Textiles, Apparel & Luxury Goods Industry

Max
5.46
Q3
3.13
Median
1.72
Q1
0.83
Min
0.26

RL’s P/S Ratio of 2.45 aligns with the market consensus for the Textiles, Apparel & Luxury Goods industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GM vs. RL: A comparison of their Price-to-Sales Ratio (TTM) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Price-to-Book Ratio (MRQ)

GM

0.71

Automobiles Industry

Max
4.25
Q3
2.00
Median
0.87
Q1
0.46
Min
0.19

GM’s P/B Ratio of 0.71 is within the conventional range for the Automobiles industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RL

5.27

Textiles, Apparel & Luxury Goods Industry

Max
9.76
Q3
6.00
Median
3.26
Q1
1.97
Min
0.69

RL’s P/B Ratio of 5.27 is within the conventional range for the Textiles, Apparel & Luxury Goods industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

GM vs. RL: A comparison of their Price-to-Book Ratio (MRQ) against their respective Automobiles and Textiles, Apparel & Luxury Goods industry benchmarks.

Valuation at a Glance

SymbolGMRL
Price-to-Earnings Ratio (TTM)11.3823.39
Price-to-Sales Ratio (TTM)0.292.45
Price-to-Book Ratio (MRQ)0.715.27
Price-to-Free Cash Flow Ratio (TTM)42.1817.05