Kering vs Shopify Which Is More Profitable?

Kering and Shopify are two prominent players in the stock market, each offering unique opportunities for investors. Kering, a luxury goods giant, has a strong track record of success with brands like Gucci and Saint Laurent. On the other hand, Shopify is a fast-growing e-commerce platform that has seen significant growth in recent years. Both companies have their own strengths and weaknesses, making them intriguing options for investors looking to diversify their portfolios. In this comparison, we will delve into the key factors that differentiate Kering and Shopify stocks, helping investors make informed decisions about their investment strategies.

Kering or Shopify?

When comparing Kering and Shopify, 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 Shopify.

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 7.88%, while Shopify 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, Shopify 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 10.26 and Shopify's P/E ratio at 91.11. 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 1.84 while Shopify's P/B ratio is 12.65.

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 Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kering's ROE at 17.77% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $238.64 for Kering and $88.71 for Shopify. Over the past year, Kering's prices ranged from $238.64 to $480.99, with a yearly change of 101.55%. Shopify's prices fluctuated between $48.56 and $92.16, with a yearly change of 89.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.