Head-To-Head Comparison: Innovative Designs (OTCMKTS:IVDN) & Ralph Lauren (NYSE:RL)
by Sarita Garza · The Markets DailyRalph Lauren (NYSE:RL – Get Free Report) and Innovative Designs (OTCMKTS:IVDN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Ralph Lauren and Innovative Designs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ralph Lauren | 1 | 5 | 15 | 1 | 2.73 |
| Innovative Designs | 0 | 0 | 0 | 0 | 0.00 |
Ralph Lauren presently has a consensus price target of $352.13, indicating a potential downside of 4.98%. Given Ralph Lauren’s stronger consensus rating and higher probable upside, research analysts clearly believe Ralph Lauren is more favorable than Innovative Designs.
Institutional and Insider Ownership
67.9% of Ralph Lauren shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned by company insiders. Comparatively, 24.4% of Innovative Designs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Ralph Lauren and Innovative Designs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ralph Lauren | 11.28% | 36.18% | 12.66% |
| Innovative Designs | 18.54% | 29.89% | 26.00% |
Volatility & Risk
Ralph Lauren has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Innovative Designs has a beta of -2.99, meaning that its share price is 399% less volatile than the S&P 500.
Earnings & Valuation
This table compares Ralph Lauren and Innovative Designs”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ralph Lauren | $7.08 billion | 3.17 | $742.90 million | $13.53 | 27.39 |
| Innovative Designs | $1.38 million | 5.41 | $100,000.00 | $0.03 | 6.46 |
Ralph Lauren has higher revenue and earnings than Innovative Designs. Innovative Designs is trading at a lower price-to-earnings ratio than Ralph Lauren, indicating that it is currently the more affordable of the two stocks.
Summary
Ralph Lauren beats Innovative Designs on 12 of the 15 factors compared between the two stocks.
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.
About Innovative Designs
Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.