AL vs Kering Which Offers More Value?

AL and Kering are two prominent companies in the fashion industry, known for their luxury brands and high-end products. While both companies have seen significant growth and success in recent years, there are key differences in their stock performances. AL stock has been steadily increasing in value, fueled by strong sales and brand recognition. On the other hand, Kering stock has faced some volatility, with fluctuations in the market affecting its value. Understanding these nuances can help investors make informed decisions about which stock may be a more attractive investment opportunity.

AL or Kering?

When comparing AL and Kering, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AL and Kering.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AL has a dividend yield of -%, while Kering has a dividend yield of 8.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Kering reports a 5-year dividend growth of 16.17% year and a payout ratio of 64.15%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AL P/E ratio at -16.09 and Kering's P/E ratio at 9.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -36.54 while Kering's P/B ratio is 1.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.58 for AL and $222.24 for Kering. Over the past year, AL's prices ranged from HK$0.48 to HK$1.06, with a yearly change of 120.83%. Kering's prices fluctuated between $220.18 and $480.99, with a yearly change of 118.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.