JD.com vs Kering Which Is More Profitable?

JD.com and Kering are two prominent companies in the retail industry, each offering unique value propositions to investors. JD.com, China's largest e-commerce platform, has experienced robust growth in recent years as online shopping becomes increasingly popular among consumers. On the other hand, Kering, a luxury goods conglomerate known for brands such as Gucci and Saint Laurent, has consistently delivered strong financial performance due to its high-end offerings and global presence. As both companies continue to navigate the evolving retail landscape, investors may find themselves weighing the potential of JD.com's expanding market reach against Kering's established luxury portfolio.

JD.com or Kering?

When comparing JD.com 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 JD.com 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. JD.com has a dividend yield of 0.31%, while Kering has a dividend yield of 8.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. JD.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.68%. 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 JD.com P/E ratio at 23.36 and Kering's P/E ratio at 9.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. JD.com P/B ratio is 3.30 while Kering's P/B ratio is 1.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, JD.com has seen a 5-year revenue growth of 1.12%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JD.com's ROE at 13.74% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.16 for JD.com and $222.24 for Kering. Over the past year, JD.com's prices ranged from $20.82 to $47.82, with a yearly change of 129.68%. Kering's prices fluctuated between $220.18 and $480.99, with a yearly change of 118.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.