Contrasting Kering (OTCMKTS:PPRUY) and Hennes & Mauritz (OTCMKTS:HNNMY)

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

Institutional & Insider Ownership

1.0% of Kering shares are owned by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are owned by institutional investors. 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.

Risk and Volatility

Kering has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kering and Hennes & Mauritz”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kering	$18.61 billion	N/A	$1.23 billion	N/A	N/A
Hennes & Mauritz	$22.18 billion	1.23	$1.11 billion	$0.14	27.64

Kering has higher earnings, but lower revenue than Hennes & Mauritz.

Profitability

This table compares Kering and Hennes & Mauritz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kering	N/A	N/A	N/A
Hennes & Mauritz	4.80%	26.34%	6.32%

Dividends

Kering pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Hennes & Mauritz pays an annual dividend of $0.09 per share and has a dividend yield of 2.3%. Hennes & Mauritz pays out 64.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Kering and Hennes & Mauritz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kering	3	4	1	1	2.00
Hennes & Mauritz	0	6	0	1	2.29

Summary

Hennes & Mauritz beats Kering on 6 of the 11 factors compared between the two stocks.

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.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.