Microsoft vs Kering

Microsoft and Kering are two widely recognized companies in the technology and luxury goods industries, respectively. Microsoft, a leading software and technology company, has consistently shown strong performance and growth in the stock market. On the other hand, Kering, a luxury goods conglomerate, has seen mixed results due to changing consumer trends and global economic conditions. Investors may find themselves debating between investing in the stable and established Microsoft or taking a risk on the potential growth of Kering.

Microsoft or Kering?

When comparing Microsoft and Kering, 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 Microsoft and Kering.

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. Microsoft has a dividend yield of 0.72%, while Kering has a dividend yield of 7.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%. On the other hand, Kering reports a 5-year dividend growth of 16.17% year and a payout ratio of 64.15%.

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 Microsoft P/E ratio at 35.31 and Kering's P/E ratio at 10.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Microsoft P/B ratio is 11.59 while Kering's P/B ratio is 1.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Microsoft has seen a 5-year revenue growth of 0.99%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 35.95% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.26 for Microsoft and $242.09 for Kering. Over the past year, Microsoft's prices ranged from $324.39 to $468.35, with a yearly change of 44.38%. Kering's prices fluctuated between $242.09 and $480.99, with a yearly change of 98.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.