Comparing ON (NYSE:ONON) & Kering (OTCMKTS:PPRUY)

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

Analyst Ratings

This is a summary of recent ratings for ON and Kering, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	0	2	18	2	3.00
Kering	3	5	0	1	1.89

ON presently has a consensus price target of $63.85, suggesting a potential upside of 17.71%. Given ON’s stronger consensus rating and higher probable upside, analysts plainly believe ON is more favorable than Kering.

Earnings and Valuation

This table compares ON and Kering”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$2.63 billion	12.97	$275.23 million	$0.70	77.49
Kering	$18.61 billion	1.55	$1.23 billion	N/A	N/A

Kering has higher revenue and earnings than ON.

Volatility and Risk

ON has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500. Comparatively, Kering has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

36.4% of ON shares are held by institutional investors. Comparatively, 1.0% of Kering shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ON	7.81%	14.79%	8.83%
Kering	N/A	N/A	N/A

Summary

ON beats Kering on 10 of the 12 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

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.