WallStSmart

Gildan Activewear Inc. (GIL)vsRalph Lauren Corp Class A (RL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ralph Lauren Corp Class A generates 76% more annual revenue ($8.36B vs $4.74B). RL leads profitability with a 11.8% profit margin vs 1.3%. GIL appears more attractively valued with a PEG of 0.39. RL earns a higher WallStSmart Score of 66/100 (B-).

GIL

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.29

RL

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 4.0Quality: 7.5
Piotroski: 6/9Altman Z: 4.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$57.25

Current Price

$47.01

$10.24 premium

UndervaluedFair: $57.25Overvalued
RLSignificantly Overvalued (-76.4%)

Margin of Safety

-76.4%

Fair Value

$203.85

Current Price

$346.06

$142.21 premium

UndervaluedFair: $203.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GIL4 strengths · Avg: 9.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Revenue GrowthGrowth
72.3%10/10

Revenue surging 72.3% year-over-year

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

RL3 strengths · Avg: 9.3/10
Return on EquityProfitability
36.1%10/10

Every $100 of equity generates 36 in profit

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
21.6%8/10

Earnings expanding 21.6% YoY

Areas to Watch

GIL4 concerns · Avg: 3.3/10
P/E RatioValuation
35.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Debt/EquityHealth
1.453/10

Elevated debt levels

RL2 concerns · Avg: 3.5/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Debt/EquityHealth
1.103/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GIL

The strongest argument for GIL centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 72.3% demonstrates continued momentum. PEG of 0.39 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, EPS Growth. Revenue growth of 14.0% demonstrates continued momentum.

Bear Case : GIL

The primary concerns for GIL are P/E Ratio, Return on Equity, Profit Margin. Thin 1.3% margins leave little buffer for downturns.

Bear Case : RL

The primary concerns for RL are PEG Ratio, Debt/Equity.

Key Dynamics to Monitor

GIL profiles as a hypergrowth stock while RL is a value play — different risk/reward profiles.

RL carries more volatility with a beta of 1.35 — expect wider price swings.

GIL is growing revenue faster at 72.3% — sustainability is the question.

GIL generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

RL scores higher overall (66/100 vs 63/100) and 14.0% revenue growth. Both earn "Strong Buy" and "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.

Gildan Activewear Inc.

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, Canada, and internationally. The company is headquartered in Montreal, Canada.

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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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