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

Updated on August 24, 2025

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

Company Profile

Symbol	RACE	RL
Company Name	Ferrari N.V.	Ralph Lauren Corporation
Country	Italy	United States
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry	Automobiles	Textiles, Apparel & Luxury Goods
Market Capitalization	83.48 billion USD	17.34 billion USD
Exchange	NYSE	NYSE
Listing Date	October 21, 2015	June 12, 1997
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of RACE 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.

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

Historical Performance at a Glance

Symbol	RACE	RL
5-Day Price Return	6.15%	-1.44%
13-Week Price Return	-8.16%	3.08%
26-Week Price Return	-12.25%	2.76%
52-Week Price Return	-3.29%	71.38%
Month-to-Date Return	5.22%	-4.19%
Year-to-Date Return	-1.70%	23.92%
10-Day Avg. Volume	0.34M	0.84M
3-Month Avg. Volume	0.32M	0.75M
3-Month Volatility	31.96%	28.75%
Beta	1.01	1.65

Profitability

Return on Equity (TTM)

RACE

45.61%

Automobiles Industry

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

RACE’s Return on Equity of 45.61% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

RACE 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)

RACE

22.91%

Automobiles Industry

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

RACE’s Net Profit Margin of 22.91% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

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.

RACE 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)

RACE

29.16%

Automobiles Industry

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

RACE’s Operating Profit Margin of 29.16% is exceptionally high, placing it well above the typical range for the Automobiles industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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.

RACE 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

Symbol	RACE	RL
Return on Equity (TTM)	45.61%	29.90%
Return on Assets (TTM)	16.76%	10.78%
Net Profit Margin (TTM)	22.91%	10.49%
Operating Profit Margin (TTM)	29.16%	13.17%
Gross Profit Margin (TTM)	51.20%	68.55%

Financial Strength

Current Ratio (MRQ)

RACE

2.08

Automobiles Industry

Max: 2.19
Q3: 1.54
Median: 1.26
Q1: 1.09
Min: 0.48

RACE’s Current Ratio of 2.08 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.

RACE 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)

RACE

0.89

Automobiles Industry

Max: 2.34
Q3: 1.13
Median: 0.58
Q1: 0.28
Min: 0.06

RACE’s Debt-to-Equity Ratio of 0.89 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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.

RACE 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)

RACE

181.49

Automobiles Industry

Max: 77.87
Q3: 42.86
Median: 13.88
Q1: 2.13
Min: -49.07

With an Interest Coverage Ratio of 181.49, RACE demonstrates a superior capacity to service its debt, placing it well above the typical range for the Automobiles industry. This stems from either robust earnings or a conservative debt load.

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.

RACE 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

Symbol	RACE	RL
Current Ratio (MRQ)	2.08	1.78
Quick Ratio (MRQ)	1.61	1.29
Debt-to-Equity Ratio (MRQ)	0.89	0.54
Interest Coverage Ratio (TTM)	181.49	85.38

Growth

Revenue Growth

RACE 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

RACE 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)

RACE

0.67%

Automobiles Industry

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

RACE’s Dividend Yield of 0.67% 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.

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

Dividend Payout Ratio (TTM)

RACE

44.33%

Automobiles Industry

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

RACE’s Dividend Payout Ratio of 44.33% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

RACE 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

Symbol	RACE	RL
Dividend Yield (TTM)	0.67%	1.16%
Dividend Payout Ratio (TTM)	44.33%	27.07%

Valuation

Price-to-Earnings Ratio (TTM)

RACE

48.99

Automobiles Industry

Max: 27.69
Q3: 19.99
Median: 9.85
Q1: 6.60
Min: 4.25

At 48.99, RACE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Automobiles industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

RACE 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)

RACE

11.23

Automobiles Industry

Max: 1.52
Q3: 0.84
Median: 0.41
Q1: 0.23
Min: 0.08

With a P/S Ratio of 11.23, RACE trades at a valuation that eclipses even the highest in the Automobiles industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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.

RACE 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)

RACE

22.78

Automobiles Industry

Max: 4.25
Q3: 2.00
Median: 0.87
Q1: 0.46
Min: 0.19

At 22.78, RACE’s P/B Ratio is at an extreme premium to the Automobiles industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

RACE 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

Symbol	RACE	RL
Price-to-Earnings Ratio (TTM)	48.99	23.39
Price-to-Sales Ratio (TTM)	11.23	2.45
Price-to-Book Ratio (MRQ)	22.78	5.27
Price-to-Free Cash Flow Ratio (TTM)	57.47	17.05