LVMH vs Tapestry Which Is More Favorable?

LVMH and Tapestry are two prominent companies in the luxury fashion industry, each offering unique products and services to a discerning consumer base. LVMH, the French multinational conglomerate, boasts a portfolio of prestigious brands such as Louis Vuitton, Dior, and Givenchy. Tapestry, on the other hand, is the parent company of Coach, Kate Spade, and Stuart Weitzman. Both companies have seen fluctuations in their stock prices due to various factors, making them popular choices for investors seeking exposure to the luxury goods sector.

LVMH or Tapestry?

When comparing LVMH and Tapestry, 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 LVMH and Tapestry.

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. LVMH has a dividend yield of 2.15%, while Tapestry has a dividend yield of 2.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%. On the other hand, Tapestry reports a 5-year dividend growth of -0.75% year and a payout ratio of 39.95%.

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 LVMH P/E ratio at 22.92 and Tapestry's P/E ratio at 18.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LVMH P/B ratio is 4.94 while Tapestry's P/B ratio is 4.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LVMH has seen a 5-year revenue growth of 0.85%, while Tapestry's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Tapestry's ROE at 28.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $668.40 for LVMH and $61.49 for Tapestry. Over the past year, LVMH's prices ranged from $598.42 to $958.69, with a yearly change of 60.20%. Tapestry's prices fluctuated between $35.23 and $65.30, with a yearly change of 85.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.