Apple vs Kering Which Is More Profitable?

Apple and Kering are two major players in the stock market, representing different sectors within the consumer goods industry. Apple, a tech giant known for its innovation and loyal customer base, has seen steady growth in its stock price over the years. On the other hand, Kering, a luxury goods company that owns well-known brands such as Gucci and Saint Laurent, has also experienced success in the market. Both companies have unique strengths and weaknesses, making them interesting options for investors looking to diversify their portfolios.

Apple or Kering?

When comparing Apple 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 Apple 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. Apple has a dividend yield of 0.4%, while Kering has a dividend yield of 5.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. 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 Apple P/E ratio at 40.13 and Kering's P/E ratio at 11.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 66.06 while Kering's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $245.68 for Apple and $255.00 for Kering. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. 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.