Alibaba vs Kering Which Is More Attractive?

Alibaba Group Holdings Ltd. and Kering SA are two major players in the global stock market, representing different sectors of the economy. Alibaba, a Chinese e-commerce giant, has experienced significant growth in recent years due to its strong presence in the digital retail space. On the other hand, Kering, a French luxury goods company, has a strong portfolio of high-end brands such as Gucci and Yves Saint Laurent. Both companies have seen fluctuations in their stock prices, making them interesting options for investors seeking exposure to different industries.

Alibaba or Kering?

When comparing Alibaba 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 Alibaba 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. Alibaba has a dividend yield of 3.01%, while Kering has a dividend yield of 5.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%. 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 Alibaba P/E ratio at 18.25 and Kering's P/E ratio at 11.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alibaba P/B ratio is 1.65 while Kering's P/B ratio is 2.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alibaba has seen a 5-year revenue growth of 2.38%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 8.88% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.24 for Alibaba and $255.00 for Kering. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Kering's prices fluctuated between $212.00 and $480.99, with a yearly change of 126.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.