Kering vs Walmart Which Is a Smarter Choice?

Kering and Walmart are two major players in the retail industry, each with a unique position in the market. Kering, a luxury goods company known for its high-end fashion brands like Gucci and Saint Laurent, has seen significant growth in recent years. On the other hand, Walmart is a retail giant known for its affordable prices and wide range of products. Both companies have their own strengths and weaknesses, making them attractive investment options for different types of investors.

Kering or Walmart?

When comparing Kering and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.96%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

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 Walmart's P/E ratio at 43.56. 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 Walmart's P/B ratio is 8.02.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kering's ROE at 17.77% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $238.64 for Kering and $84.12 for Walmart. Over the past year, Kering's prices ranged from $238.64 to $480.99, with a yearly change of 101.55%. Walmart's prices fluctuated between $49.85 and $85.54, with a yearly change of 71.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.