Tapestry (NYSE:TPR) vs. Kering (OTCMKTS:PPRUY) Financial Survey

Tapestry (NYSE:TPR) and Kering (OTCMKTS:PPRUY) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapestry	$7.01 billion	4.23	$183.20 million	$2.42	60.58
Kering	$16.60 billion	2.13	$81.46 million	N/A	N/A

Tapestry has higher earnings, but lower revenue than Kering.

Institutional and Insider Ownership

90.8% of Tapestry shares are owned by institutional investors. Comparatively, 1.0% of Kering shares are owned by institutional investors. 1.3% of Tapestry shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Tapestry has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Kering has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tapestry	6.95%	157.98%	19.48%
Kering	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapestry	0	5	13	2	2.85
Kering	3	4	2	0	1.89

Tapestry presently has a consensus target price of $153.33, indicating a potential upside of 4.59%. Given Tapestry’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tapestry is more favorable than Kering.

Dividends

Tapestry pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Kering pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Tapestry pays out 66.1% of its earnings in the form of a dividend. Tapestry has raised its dividend for 3 consecutive years. Tapestry is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Tapestry beats Kering on 14 of the 16 factors compared between the two stocks.

About Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.

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.