eBay vs Kering Which Offers More Value?
eBay and Kering are two companies operating in very different sectors of the market. eBay is an online marketplace where individuals and businesses can buy and sell a wide variety of goods, while Kering is a luxury goods conglomerate with a portfolio of high-end brands. Investors looking to diversify their portfolios may find value in comparing the performance of these two stocks, as they represent different segments of the retail industry and may offer unique opportunities for growth and stability.
eBay or Kering?
When comparing eBay 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 eBay 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.
eBay has a dividend yield of 1.7%, while Kering has a dividend yield of 7.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%. 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 eBay P/E ratio at 15.05 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. eBay P/B ratio is 5.61 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, eBay has seen a 5-year revenue growth of 0.73%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 34.22% and Kering's ROE at 17.77%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.97 for eBay and $238.64 for Kering. Over the past year, eBay's prices ranged from $38.60 to $67.80, with a yearly change of 75.65%. 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.