Reviewing Blue (OTCMKTS:BLHI) and Ralph Lauren (NYSE:RL)

Blue (OTCMKTS:BLHI) and Ralph Lauren (NYSE:RL) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

67.9% of Ralph Lauren shares are owned by institutional investors. 38.3% of Ralph Lauren shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Blue and Ralph Lauren”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue	N/A	N/A	N/A	N/A	N/A
Ralph Lauren	$7.08 billion	2.58	$742.90 million	$11.61	26.12

Ralph Lauren has higher revenue and earnings than Blue.

Analyst Recommendations

This is a summary of current ratings and target prices for Blue and Ralph Lauren, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue	0	0	0	0	0.00
Ralph Lauren	1	2	13	1	2.82

Ralph Lauren has a consensus target price of $298.19, suggesting a potential downside of 1.69%. Given Blue’s higher probable upside, equities research analysts clearly believe Blue is more favorable than Ralph Lauren.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue	N/A	N/A	N/A
Ralph Lauren	10.49%	31.76%	11.45%

Summary

Ralph Lauren beats Blue on 9 of the 10 factors compared between the two stocks.

About Blue

Blue Holdings Inc., directly and through its wholly owned subsidiary Antik Denim, LLC, designs, develops, manufactures, markets, distributes, and sells high-end fashion jeans, apparel, and accessories under the principal brand names Antik Denim, Taverniti So Jeans, Yanuk, and Faith Connexion. Its products include jeans, jackets, belts, purses, and T-shirts. The company sells premium denim products and accessories in high-end department stores and fashion boutiques that cater to fashion conscious consumers. Its products are sold in the United States, Canada, Japan, and the European Union directly to department stores and boutiques, and through distribution arrangements in a various countries. Blue Holdings Inc. was formerly known as Marine Jet Technology Corp. and changed its name to Blue Holdings Inc. in June 2005. The company was incorporated in 2000 and is headquartered in Commerce, California with showrooms in Los Angeles and New York.

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.