Kering (OTCMKTS:PPRUY) vs. Capri (NYSE:CPRI) Financial Analysis

Capri (NYSE:CPRI) and Kering (OTCMKTS:PPRUY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Risk & Volatility

Capri has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Kering has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Valuation and Earnings

This table compares Capri and Kering”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$4.33 billion	0.51	-$1.18 billion	($4.26)	-4.36
Kering	$16.60 billion	N/A	$81.44 million	N/A	N/A

Kering has higher revenue and earnings than Capri.

Insider and Institutional Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 1.0% of Kering shares are owned by institutional investors. 2.3% of Capri shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Capri and Kering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capri	-13.57%	-430.23%	-8.70%
Kering	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Capri and Kering, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	7	6	1	2.47
Kering	2	5	1	0	1.88

Capri presently has a consensus target price of $26.46, suggesting a potential upside of 42.32%. Given Capri’s stronger consensus rating and higher possible upside, analysts plainly believe Capri is more favorable than Kering.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

About Kering

Kering SA manages the development of a series of renowned houses in fashion, leather goods and jewelry in France, the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company offers ready-to-wear products apparel and accessories for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, Kering Beauté, and Kering Eyewear brands. 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.