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PHM vs RL

PHM
PulteGroup, Inc.
NEUTRAL
Price
$119.21
Market Cap
$22.71B
Sector
Consumer Cyclical
AI Confidence
85%
RL
Ralph Lauren Corporation
BULLISH
Price
$362.21
Market Cap
$21.96B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
PHM
11.53
RL
24.62
Forward P/E
PHM
10.65
RL
20.13
P/B Ratio
PHM
1.76
RL
7.6
P/S Ratio
PHM
1.35
RL
2.8
EV/EBITDA
PHM
7.93
RL
16.48

Profitability

Gross Margin
PHM
26.1%
RL
69.65%
Operating Margin
PHM
13.13%
RL
20.09%
Profit Margin
PHM
12.14%
RL
11.73%
ROE
PHM
16.18%
RL
33.85%
ROA
PHM
9.96%
RL
9.57%

Growth

Revenue Growth
PHM
-12.4%
RL
12.2%
Earnings Growth
PHM
-30.4%
RL
24.9%

Financial Health

Debt/Equity
PHM
0.19
RL
0.99
Current Ratio
PHM
7.14
RL
2.1
Quick Ratio
PHM
0.79
RL
1.44

Dividends

Dividend Yield
PHM
0.87%
RL
1.01%
Payout Ratio
PHM
9.28%
RL
24.23%

AI Verdict

PHM NEUTRAL

PHM exhibits a contradictory profile: a weak Piotroski F-Score of 3/9 indicates deteriorating operational health, yet the balance sheet remains exceptionally clean with a Debt/Equity ratio of 0.19. While the current price of $119.21 sits below the Graham Number ($125.69), it is significantly higher than the growth-based intrinsic value of $72.38, reflecting a premium that is not supported by current negative growth trends. Revenue and earnings are in a sharp cyclical decline (-12.4% and -30.4% YoY respectively), driven by mortgage rate volatility and affordability challenges. The stock is currently a battle between strong solvency and weakening fundamentals.

Strengths
Extremely low leverage (Debt/Equity 0.19)
Strong liquidity position (Current Ratio 7.14)
Low valuation relative to sector average P/E (11.53 vs 31.73)
Risks
Significant earnings contraction (-30.4% YoY)
Gross margin compression (28.9% to 26.3% per 10-K)
High sensitivity to mortgage interest rate volatility
RL BULLISH

Ralph Lauren exhibits strong fundamental growth and exceptional profitability, anchored by a Piotroski F-Score of 4/9, indicating stable financial health. While the stock trades at a significant premium to its Graham Number ($125.6), it remains below its growth-based intrinsic value ($433.95), reflecting its status as a luxury brand with high pricing power. Exceptional ROE (33.85%) and consistent earnings beats over 25 quarters provide a strong floor, though bearish insider activity and technical trends suggest short-term volatility.

Strengths
Exceptional gross margins (69.65%) and operating margins (20.09%)
Strong Return on Equity (ROE) of 33.85%
Consistent earnings track record with 3/4 recent beats and high average surprises
Risks
Bearish insider sentiment, specifically significant selling by the CEO
Very weak technical trend (10/100) suggesting short-term downward momentum
High Price-to-Book ratio (7.60) indicating a steep valuation premium

Compare Another Pair

PHM vs RL: Head-to-Head Comparison

This page compares PulteGroup, Inc. (PHM) and Ralph Lauren Corporation (RL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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