KERING S A/ADR (OTCMKTS:PPRUY) and Erie Indemnity (NASDAQ:ERIE) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Dividends

KERING S A/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 1.7%. Erie Indemnity pays an annual dividend of $3.36 per share and has a dividend yield of 2.7%. Erie Indemnity pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Erie Indemnity has increased its dividend for 22 consecutive years. Erie Indemnity is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares KERING S A/ADR and Erie Indemnity’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KERING S A/ADR $17.49 billion 3.01 $2.02 billion N/A N/A
Erie Indemnity $1.69 billion 3.40 $196.99 million $3.95 31.49

KERING S A/ADR has higher revenue and earnings than Erie Indemnity.

Insider & Institutional Ownership

0.0% of KERING S A/ADR shares are owned by institutional investors. Comparatively, 31.2% of Erie Indemnity shares are owned by institutional investors. 46.8% of Erie Indemnity shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for KERING S A/ADR and Erie Indemnity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KERING S A/ADR 0 0 1 0 3.00
Erie Indemnity 0 0 0 0 N/A

Risk & Volatility

KERING S A/ADR has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Erie Indemnity has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares KERING S A/ADR and Erie Indemnity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KERING S A/ADR N/A N/A N/A
Erie Indemnity 11.59% 28.52% 15.10%

Summary

Erie Indemnity beats KERING S A/ADR on 8 of the 13 factors compared between the two stocks.

About KERING S A/ADR

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories worldwide. The company offers shoes; leather goods, including handbags and wallets, and other leather products; eyewear and textile accessories; jewelry and watches; and outerwear, denims, T-shirts, and formalwear for men, as well as ready-to-wear products for women. It also provides perfumes and cosmetics; and sports products. The company provides its products under the Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin, and Ulysse Nardin, Puma, Volcom, Cobra, and Kering brand names. It sells its products through department stores, multi-brand stores, and franchise stores, as well as retail channels and e-commerce Websites. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.

About Erie Indemnity

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, and policy issuance services for the policyholders on behalf of the Erie Insurance Exchange. Its sales related services include agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing, as well as provides administrative support, information technology, and customer services. The company operates three field offices. Erie Indemnity Company was founded in 1925 and is based in Erie, Pennsylvania.

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