PDD vs Kering Which Offers More Value?

PDD and Kering are two prominent companies in the fashion and luxury goods industries. PDD, also known as Pinduoduo, is a Chinese e-commerce platform specializing in affordable and trendy products, while Kering is a global luxury goods conglomerate that owns renowned brands such as Gucci, Saint Laurent, and Balenciaga. Both companies have displayed strong performances in recent years, but PDD's focus on value-based products contrasts with Kering's high-end luxury offerings, making them appealing options for investors with different risk profiles.

PDD or Kering?

When comparing PDD 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 PDD 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. PDD has a dividend yield of -%, while Kering has a dividend yield of 5.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PDD reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 PDD P/E ratio at 9.74 and Kering's P/E ratio at 11.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PDD P/B ratio is 3.79 while Kering's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PDD has seen a 5-year revenue growth of 8.60%, while Kering's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PDD's ROE at 46.15% and Kering's ROE at 17.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $103.10 for PDD and $255.00 for Kering. Over the past year, PDD's prices ranged from $88.01 to $164.69, with a yearly change of 87.13%. Kering's prices fluctuated between $212.00 and $480.99, with a yearly change of 126.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.