Critical Contrast: Ralph Lauren (NYSE:RL) vs. Shenzhou International Group (OTCMKTS:SHZHY)

Shenzhou International Group (OTCMKTS:SHZHY) and Ralph Lauren (NYSE:RL) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

This table compares Shenzhou International Group and Ralph Lauren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenzhou International Group	N/A	N/A	N/A
Ralph Lauren	11.76%	39.10%	14.11%

Earnings and Valuation

This table compares Shenzhou International Group and Ralph Lauren”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenzhou International Group	N/A	N/A	N/A	N/A	N/A
Ralph Lauren	$8.11 billion	2.73	$941.10 million	$15.87	23.42

Ralph Lauren has higher revenue and earnings than Shenzhou International Group.

Institutional & Insider Ownership

67.9% of Ralph Lauren shares are held by institutional investors. 37.2% of Ralph Lauren shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Shenzhou International Group pays an annual dividend of $0.24 per share and has a dividend yield of 4.4%. Ralph Lauren pays an annual dividend of $4.00 per share and has a dividend yield of 1.1%. Ralph Lauren pays out 25.2% of its earnings in the form of a dividend. Ralph Lauren has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings for Shenzhou International Group and Ralph Lauren, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenzhou International Group	0	1	0	0	2.00
Ralph Lauren	0	2	16	0	2.89

Ralph Lauren has a consensus price target of $445.67, indicating a potential upside of 19.90%. Given Ralph Lauren’s stronger consensus rating and higher possible upside, analysts clearly believe Ralph Lauren is more favorable than Shenzhou International Group.

Summary

Ralph Lauren beats Shenzhou International Group on 10 of the 12 factors compared between the two stocks.

About Shenzhou International Group

Shenzhou International Group Holdings Limited, an investment holding company, engages in the manufacture, printing, and sale of knitwear products in Mainland China, European Union, the United States, Japan, and internationally. It produces and sells knitted sportswear, casual wear, and lingerie wear. The company is also involved in the import and export of commodities; aircraft leasing; and property management activities. Shenzhou International Group Holdings Limited was founded in 2000 and is based in Kowloon, Hong Kong.

About Ralph Lauren

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.