RL vs. TSLA: A Head-to-Head Stock Comparison
Updated onHere’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 | 19.90 billion USD | 1,405.03 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.
Historical Performance at a Glance
| Symbol | RL | TSLA |
|---|---|---|
| 5-Day Price Return | -0.96% | -6.98% |
| 13-Week Price Return | 14.06% | 22.01% |
| 26-Week Price Return | 22.87% | 17.61% |
| 52-Week Price Return | 57.27% | 31.41% |
| Month-to-Date Return | 3.70% | -10.43% |
| Year-to-Date Return | 43.51% | 1.26% |
| 10-Day Avg. Volume | 0.78M | 90.86M |
| 3-Month Avg. Volume | 0.62M | 88.26M |
| 3-Month Volatility | 26.26% | 50.07% |
| Beta | 1.52 | 1.85 |
Profitability
Return on Equity (TTM)
RL
33.42%
Textiles, Apparel & Luxury Goods Industry
- Max
- 46.95%
- Q3
- 26.41%
- Median
- 17.82%
- Q1
- 9.41%
- Min
- -8.23%
In the upper quartile for the Textiles, Apparel & Luxury Goods industry, RL’s Return on Equity of 33.42% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TSLA
6.91%
Automobiles Industry
- Max
- 28.52%
- Q3
- 12.92%
- Median
- 5.04%
- Q1
- -1.15%
- Min
- -15.36%
TSLA’s Return on Equity of 6.91% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
RL
11.28%
Textiles, Apparel & Luxury Goods Industry
- Max
- 21.16%
- Q3
- 13.26%
- Median
- 7.68%
- Q1
- 4.48%
- Min
- -3.05%
RL’s Net Profit Margin of 11.28% 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
5.51%
Automobiles Industry
- Max
- 10.74%
- Q3
- 5.64%
- Median
- 2.77%
- Q1
- -0.52%
- Min
- -6.61%
TSLA’s Net Profit Margin of 5.51% 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.
Operating Profit Margin (TTM)
RL
14.05%
Textiles, Apparel & Luxury Goods Industry
- Max
- 28.42%
- Q3
- 20.87%
- Median
- 12.08%
- Q1
- 6.65%
- Min
- -0.12%
RL’s Operating Profit Margin of 14.05% 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
4.74%
Automobiles Industry
- Max
- 13.07%
- Q3
- 7.22%
- Median
- 4.62%
- Q1
- -0.45%
- Min
- -6.16%
TSLA’s Operating Profit Margin of 4.74% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | RL | TSLA |
|---|---|---|
| Return on Equity (TTM) | 33.42% | 6.91% |
| Return on Assets (TTM) | 11.69% | 4.14% |
| Net Profit Margin (TTM) | 11.28% | 5.51% |
| Operating Profit Margin (TTM) | 14.05% | 4.74% |
| Gross Profit Margin (TTM) | 69.22% | 17.01% |
Financial Strength
Current Ratio (MRQ)
RL
2.04
Textiles, Apparel & Luxury Goods Industry
- Max
- 3.07
- Q3
- 2.20
- Median
- 1.62
- Q1
- 1.47
- Min
- 0.70
RL’s Current Ratio of 2.04 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
2.07
Automobiles Industry
- Max
- 2.13
- Q3
- 1.58
- Median
- 1.28
- Q1
- 1.09
- Min
- 0.47
TSLA’s Current Ratio of 2.07 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.
Debt-to-Equity Ratio (MRQ)
RL
0.57
Textiles, Apparel & Luxury Goods Industry
- Max
- 2.53
- Q3
- 1.30
- Median
- 0.59
- Q1
- 0.27
- Min
- 0.00
RL’s Debt-to-Equity Ratio of 0.57 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
0.10
Automobiles Industry
- Max
- 2.00
- Q3
- 1.15
- Median
- 0.60
- Q1
- 0.28
- Min
- 0.05
Falling into the lower quartile for the Automobiles industry, TSLA’s Debt-to-Equity Ratio of 0.10 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
RL
85.38
Textiles, Apparel & Luxury Goods Industry
- Max
- 85.38
- Q3
- 37.37
- Median
- 8.62
- Q1
- 4.18
- Min
- -32.49
RL’s Interest Coverage Ratio of 85.38 is in the upper quartile for the Textiles, Apparel & Luxury Goods industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TSLA
71.48
Automobiles Industry
- Max
- 77.87
- Q3
- 35.88
- Median
- 13.88
- Q1
- 3.52
- Min
- -19.31
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.
Financial Strength at a Glance
| Symbol | RL | TSLA |
|---|---|---|
| Current Ratio (MRQ) | 2.04 | 2.07 |
| Quick Ratio (MRQ) | 1.29 | 1.48 |
| Debt-to-Equity Ratio (MRQ) | 0.57 | 0.10 |
| Interest Coverage Ratio (TTM) | 85.38 | 71.48 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
RL
1.05%
Textiles, Apparel & Luxury Goods Industry
- Max
- 4.60%
- Q3
- 3.43%
- Median
- 2.28%
- Q1
- 1.12%
- Min
- 0.00%
RL’s Dividend Yield of 1.05% 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
- 10.18%
- Q3
- 4.88%
- Median
- 2.84%
- 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.
Dividend Payout Ratio (TTM)
RL
24.37%
Textiles, Apparel & Luxury Goods Industry
- Max
- 156.63%
- Q3
- 96.75%
- Median
- 57.64%
- Q1
- 34.78%
- Min
- 0.00%
RL’s Dividend Payout Ratio of 24.37% 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
- 114.43%
- Q3
- 60.59%
- Median
- 39.48%
- Q1
- 20.22%
- 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.
Dividend at a Glance
| Symbol | RL | TSLA |
|---|---|---|
| Dividend Yield (TTM) | 1.05% | 0.00% |
| Dividend Payout Ratio (TTM) | 24.37% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
RL
23.28
Textiles, Apparel & Luxury Goods Industry
- Max
- 76.57
- Q3
- 39.44
- Median
- 22.87
- Q1
- 14.62
- Min
- 7.99
RL’s P/E Ratio of 23.28 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
258.16
Automobiles Industry
- Max
- 31.96
- Q3
- 22.07
- Median
- 11.17
- Q1
- 8.41
- Min
- 5.02
At 258.16, 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.
Price-to-Sales Ratio (TTM)
RL
2.63
Textiles, Apparel & Luxury Goods Industry
- Max
- 5.07
- Q3
- 2.88
- Median
- 1.80
- Q1
- 0.93
- Min
- 0.28
RL’s P/S Ratio of 2.63 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
14.22
Automobiles Industry
- Max
- 1.29
- Q3
- 0.84
- Median
- 0.51
- Q1
- 0.27
- Min
- 0.08
With a P/S Ratio of 14.22, 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.
Price-to-Book Ratio (MRQ)
RL
7.24
Textiles, Apparel & Luxury Goods Industry
- Max
- 11.14
- Q3
- 5.70
- Median
- 3.35
- Q1
- 2.02
- Min
- 0.56
RL’s P/B Ratio of 7.24 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
18.49
Automobiles Industry
- Max
- 3.99
- Q3
- 1.96
- Median
- 0.87
- Q1
- 0.46
- Min
- 0.18
At 18.49, 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.
Valuation at a Glance
| Symbol | RL | TSLA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.28 | 258.16 |
| Price-to-Sales Ratio (TTM) | 2.63 | 14.22 |
| Price-to-Book Ratio (MRQ) | 7.24 | 18.49 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.52 | 199.00 |