Kering vs PayPal Which Performs Better?

Kering and PayPal are two well-known companies in the world of finance, each offering distinct opportunities for investors. Kering, a luxury goods company, is known for its high-end brands such as Gucci and Saint Laurent, while PayPal is a leading online payment platform. Both companies have shown strong performance in recent years, with Kering benefiting from the demand for luxury goods and PayPal capitalizing on the growth of e-commerce. Investors looking to diversify their portfolio may consider investing in both stocks to capitalize on the different sectors they represent.

Kering or PayPal?

When comparing Kering and PayPal, 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 PayPal.

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 5.75%, while PayPal has a dividend yield of -%. 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, PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 11.43 and PayPal's P/E ratio at 20.35. 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 2.05 while PayPal's P/B ratio is 4.47.

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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kering's ROE at 17.77% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.00 for Kering and $88.38 for PayPal. Over the past year, Kering's prices ranged from $212.00 to $480.99, with a yearly change of 126.88%. PayPal's prices fluctuated between $55.77 and $93.66, with a yearly change of 67.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.