ALi vs Kering Which Is More Lucrative?

ALi and Kering are two prominent players in the luxury goods industry, each with its own unique strengths and challenges. ALi, a Chinese e-commerce giant, has been making waves with its expanding presence in the luxury market through partnerships and acquisitions. On the other hand, Kering, a French luxury conglomerate, boasts a portfolio of prestigious brands such as Gucci and Saint Laurent. Both companies have seen fluctuations in their stock performance due to various factors, making them intriguing options for investors seeking exposure to the luxury sector.

ALi or Kering?

When comparing ALi 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 ALi 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. ALi has a dividend yield of -%, while Kering has a dividend yield of 8.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALi 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 ALi P/E ratio at -3.72 and Kering's P/E ratio at 9.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALi P/B ratio is 3.71 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, ALi has seen a 5-year revenue growth of -0.42%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALi's ROE at -82.56% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$27.75 for ALi and $222.24 for Kering. Over the past year, ALi's prices ranged from NT$26.40 to NT$59.08, with a yearly change of 123.80%. 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.