Christian Dior vs LVMH Which Is More Lucrative?

Christian Dior and LVMH are two prominent luxury goods companies that have seen significant growth in their stock prices over the years. Christian Dior, established in 1946, is known for its high-end fashion products, while LVMH, founded in 1987, is a conglomerate that owns various luxury brands. Both companies have experienced fluctuations in their stock prices due to various factors such as economic trends and consumer demand. Investors interested in the luxury goods industry should closely monitor the performance of Christian Dior and LVMH stocks.

Christian Dior or LVMH?

When comparing Christian Dior and LVMH, 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 Christian Dior and LVMH.

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. Christian Dior has a dividend yield of 1.97%, while LVMH has a dividend yield of 2.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Christian Dior reports a 5-year dividend growth of 3.43% year and a payout ratio of 40.33%. On the other hand, LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%.

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 Christian Dior P/E ratio at 4.84 and LVMH's P/E ratio at 22.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Christian Dior P/B ratio is 1.22 while LVMH's P/B ratio is 4.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Christian Dior has seen a 5-year revenue growth of 6.34%, while LVMH's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Christian Dior's ROE at 26.09% and LVMH's ROE at 22.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $163.94 for Christian Dior and $668.40 for LVMH. Over the past year, Christian Dior's prices ranged from $136.50 to $232.03, with a yearly change of 69.99%. LVMH's prices fluctuated between $598.42 and $958.69, with a yearly change of 60.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.