Alphabet vs Kering Which Performs Better?

Alphabet Inc. and Kering SA are two influential companies in the global market, albeit operating in vastly different industries. Alphabet, as the parent company of Google, dominates the technology sector with its innovative products and services. On the other hand, Kering is a powerhouse in the luxury goods industry, known for its iconic brands like Gucci and Yves Saint Laurent. Both stocks have seen significant growth and volatility over the years, making them attractive options for investors seeking diverse opportunities.

Alphabet or Kering?

When comparing Alphabet 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 Alphabet 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. Alphabet has a dividend yield of 0.33%, while Kering has a dividend yield of 7.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%. 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 Alphabet P/E ratio at 23.51 and Kering's P/E ratio at 10.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 7.06 while Kering's P/B ratio is 1.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $179.99 for Alphabet and $238.64 for Kering. Over the past year, Alphabet's prices ranged from $129.40 to $193.31, with a yearly change of 49.39%. Kering's prices fluctuated between $238.64 and $480.99, with a yearly change of 101.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.