WallStSmart

Hanesbrands Inc (HBI)vsRalph Lauren Corp Class A (RL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ralph Lauren Corp Class A generates 122% more annual revenue ($7.83B vs $3.53B). RL leads profitability with a 11.7% profit margin vs 9.3%. HBI appears more attractively valued with a PEG of 0.19. RL earns a higher WallStSmart Score of 70/100 (B).

HBI

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 7.0Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.27

RL

Strong Buy

70

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 10.0Quality: 7.8
Piotroski: 6/9Altman Z: 3.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HBIUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$54.76

Current Price

$6.47

$48.29 discount

UndervaluedFair: $54.76Overvalued
RLUndervalued (+47.5%)

Margin of Safety

+47.5%

Fair Value

$684.68

Current Price

$345.93

$338.75 discount

UndervaluedFair: $684.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HBI4 strengths · Avg: 10.0/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
140.1%10/10

Every $100 of equity generates 140 in profit

EPS GrowthGrowth
793.0%10/10

Earnings expanding 793.0% YoY

RL4 strengths · Avg: 9.0/10
Return on EquityProfitability
33.9%10/10

Every $100 of equity generates 34 in profit

Altman Z-ScoreHealth
3.6110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

EPS GrowthGrowth
24.9%8/10

Earnings expanding 24.9% YoY

Areas to Watch

HBI3 concerns · Avg: 1.7/10
Revenue GrowthGrowth
-100.0%2/10

Revenue declined 100.0%

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

Debt/EquityHealth
5.971/10

Elevated debt levels

RL0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : HBI

The strongest argument for HBI centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bull Case : RL

The strongest argument for RL centers on Return on Equity, Altman Z-Score, Operating Margin. Revenue growth of 12.2% demonstrates continued momentum. PEG of 1.49 suggests the stock is reasonably priced for its growth.

Bear Case : HBI

The primary concerns for HBI are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 5.97 is elevated, increasing financial risk.

Bear Case : RL

No major red flags identified for RL, but monitor valuation.

Key Dynamics to Monitor

HBI carries more volatility with a beta of 1.72 — expect wider price swings.

RL is growing revenue faster at 12.2% — sustainability is the question.

RL generates stronger free cash flow (704M), providing more financial flexibility.

Monitor APPAREL MANUFACTURING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RL scores higher overall (70/100 vs 66/100) and 12.2% revenue growth. HBI offers better value entry with a 88.2% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hanesbrands Inc

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Hanesbrands Inc. is an American multinational clothing company based in Winston-Salem, North Carolina.

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Ralph Lauren Corp Class A

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.

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