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

Updated on October 7, 2025

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

Company Profile

Symbol	RL	TSLA
Company Name	Ralph Lauren Corporation	Tesla, Inc.
Country	United States	United States
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry	Textiles, Apparel & Luxury Goods	Automobiles
Market Capitalization	19.49 billion USD	1,429.25 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	June 12, 1997	June 29, 2010
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of RL and TSLA 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.

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

Historical Performance at a Glance

Symbol	RL	TSLA
5-Day Price Return	4.27%	-3.02%
13-Week Price Return	15.01%	36.30%
26-Week Price Return	45.79%	65.86%
52-Week Price Return	66.64%	72.61%
Month-to-Date Return	2.63%	-3.35%
Year-to-Date Return	39.32%	6.44%
10-Day Avg. Volume	0.57M	99.42M
3-Month Avg. Volume	0.67M	98.22M
3-Month Volatility	28.68%	45.81%
Beta	1.57	1.87

Profitability

Return on Equity (TTM)

RL

31.52%

Textiles, Apparel & Luxury Goods Industry

Max: 42.05%
Q3: 24.41%
Median: 17.18%
Q1: 7.87%
Min: -8.23%

In the upper quartile for the Textiles, Apparel & Luxury Goods industry, RL’s Return on Equity of 31.52% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TSLA

8.22%

Automobiles Industry

Max: 28.52%
Q3: 12.70%
Median: 5.15%
Q1: -1.62%
Min: -18.19%

TSLA’s Return on Equity of 8.22% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

RL

10.91%

Textiles, Apparel & Luxury Goods Industry

Max: 21.16%
Q3: 13.26%
Median: 6.06%
Q1: 3.93%
Min: -3.05%

RL’s Net Profit Margin of 10.91% 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.

TSLA

6.54%

Automobiles Industry

Max: 8.82%
Q3: 5.80%
Median: 2.77%
Q1: -1.08%
Min: -10.15%

A Net Profit Margin of 6.54% places TSLA in the upper quartile for the Automobiles industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

RL

13.69%

Textiles, Apparel & Luxury Goods Industry

Max: 29.47%
Q3: 20.87%
Median: 11.68%
Q1: 6.26%
Min: -0.12%

RL’s Operating Profit Margin of 13.69% 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.

TSLA

6.06%

Automobiles Industry

Max: 13.07%
Q3: 6.94%
Median: 4.50%
Q1: -2.17%
Min: -13.85%

TSLA’s Operating Profit Margin of 6.06% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	RL	TSLA
Return on Equity (TTM)	31.52%	8.22%
Return on Assets (TTM)	11.08%	4.89%
Net Profit Margin (TTM)	10.91%	6.54%
Operating Profit Margin (TTM)	13.69%	6.06%
Gross Profit Margin (TTM)	69.03%	17.48%

Financial Strength

Current Ratio (MRQ)

RL

1.84

Textiles, Apparel & Luxury Goods Industry

Max: 2.94
Q3: 2.22
Median: 1.61
Q1: 1.48
Min: 0.74

RL’s Current Ratio of 1.84 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.

TSLA

2.04

Automobiles Industry

Max: 2.13
Q3: 1.52
Median: 1.29
Q1: 1.09
Min: 0.47

TSLA’s Current Ratio of 2.04 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 vs. TSLA: A comparison of their Current Ratio (MRQ) against their respective Textiles, Apparel & Luxury Goods and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

RL

0.75

Textiles, Apparel & Luxury Goods Industry

Max: 2.79
Q3: 1.32
Median: 0.60
Q1: 0.27
Min: 0.00

RL’s Debt-to-Equity Ratio of 0.75 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.

TSLA

0.09

Automobiles Industry

Max: 2.07
Q3: 1.17
Median: 0.60
Q1: 0.30
Min: 0.05

Falling into the lower quartile for the Automobiles industry, TSLA’s Debt-to-Equity Ratio of 0.09 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

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

Interest Coverage Ratio (TTM)

RL

85.38

Textiles, Apparel & Luxury Goods Industry

Max: 57.00
Q3: 32.83
Median: 7.87
Q1: 3.52
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.

TSLA

71.48

Automobiles Industry

Max: 77.87
Q3: 37.26
Median: 13.42
Q1: 1.43
Min: -49.07

TSLA’s Interest Coverage Ratio of 71.48 is in the upper quartile for the Automobiles industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

Symbol	RL	TSLA
Current Ratio (MRQ)	1.84	2.04
Quick Ratio (MRQ)	1.25	1.35
Debt-to-Equity Ratio (MRQ)	0.75	0.09
Interest Coverage Ratio (TTM)	85.38	71.48

Growth

Revenue Growth

RL vs. TSLA: 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

RL vs. TSLA: 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)

RL

1.04%

Textiles, Apparel & Luxury Goods Industry

Max: 5.22%
Q3: 3.07%
Median: 2.34%
Q1: 1.11%
Min: 0.00%

RL’s Dividend Yield of 1.04% is in the lower quartile for the Textiles, Apparel & Luxury Goods industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TSLA

0.00%

Automobiles Industry

Max: 10.85%
Q3: 4.84%
Median: 2.53%
Q1: 0.00%
Min: 0.00%

TSLA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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

Dividend Payout Ratio (TTM)

RL

25.71%

Textiles, Apparel & Luxury Goods Industry

Max: 156.63%
Q3: 94.60%
Median: 52.65%
Q1: 35.04%
Min: 0.00%

RL’s Dividend Payout Ratio of 25.71% 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.

TSLA

0.00%

Automobiles Industry

Max: 131.16%
Q3: 60.59%
Median: 36.73%
Q1: 5.97%
Min: 0.00%

TSLA has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

Symbol	RL	TSLA
Dividend Yield (TTM)	1.04%	0.00%
Dividend Payout Ratio (TTM)	25.71%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

RL

24.70

Textiles, Apparel & Luxury Goods Industry

Max: 48.15
Q3: 33.82
Median: 20.70
Q1: 14.57
Min: 7.12

RL’s P/E Ratio of 24.70 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.

TSLA

235.77

Automobiles Industry

Max: 31.95
Q3: 22.20
Median: 11.17
Q1: 7.39
Min: 4.54

At 235.77, TSLA’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 vs. TSLA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Textiles, Apparel & Luxury Goods and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

RL

2.69

Textiles, Apparel & Luxury Goods Industry

Max: 4.35
Q3: 3.06
Median: 1.66
Q1: 0.83
Min: 0.26

RL’s P/S Ratio of 2.69 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.

TSLA

15.41

Automobiles Industry

Max: 1.49
Q3: 0.92
Median: 0.47
Q1: 0.24
Min: 0.09

With a P/S Ratio of 15.41, TSLA 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 vs. TSLA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Textiles, Apparel & Luxury Goods and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

RL

6.61

Textiles, Apparel & Luxury Goods Industry

Max: 9.74
Q3: 5.59
Median: 3.41
Q1: 2.01
Min: 0.56

RL’s P/B Ratio of 6.61 is in the upper tier for the Textiles, Apparel & Luxury Goods industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

TSLA

13.23

Automobiles Industry

Max: 2.87
Q3: 1.83
Median: 0.79
Q1: 0.47
Min: 0.18

At 13.23, TSLA’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 vs. TSLA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Textiles, Apparel & Luxury Goods and Automobiles industry benchmarks.

Valuation at a Glance

Symbol	RL	TSLA
Price-to-Earnings Ratio (TTM)	24.70	235.77
Price-to-Sales Ratio (TTM)	2.69	15.41
Price-to-Book Ratio (MRQ)	6.61	13.23
Price-to-Free Cash Flow Ratio (TTM)	19.27	255.86