Kering vs Alibaba

Kering and Alibaba are two giants in the world of investing, each offering unique opportunities for investors. Kering, the luxury goods conglomerate known for brands like Gucci and Saint Laurent, has seen impressive growth in recent years as demand for high-end fashion continues to rise. On the other hand, Alibaba, the Chinese e-commerce giant, is a dominant player in the online retail and technology space, with a rapidly expanding customer base. Both stocks present exciting opportunities for investors looking to diversify their portfolios and capitalize on different sectors of the market.

Kering or Alibaba?

When comparing Kering and Alibaba, 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 Kering and Alibaba.

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. Kering has a dividend yield of 7.51%, while Alibaba has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kering reports a 5-year dividend growth of 16.17% year and a payout ratio of 64.15%. On the other hand, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.58%.

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 Kering P/E ratio at 10.32 and Alibaba's P/E ratio at 24.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kering P/B ratio is 1.85 while Alibaba's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kering has seen a 5-year revenue growth of 0.47%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kering's ROE at 17.77% and Alibaba's ROE at 7.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $242.09 for Kering and $101.64 for Alibaba. Over the past year, Kering's prices ranged from $242.09 to $480.99, with a yearly change of 98.68%. Alibaba's prices fluctuated between $66.63 and $117.82, with a yearly change of 76.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.