Financial Review: Kering (OTCMKTS:PPRUY) & Burberry Group (OTCMKTS:BURBY)

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

Volatility & Risk

Kering has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Kering and Burberry Group’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
Burberry Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kering and Burberry Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kering	2	3	2	2	2.44
Burberry Group	0	1	1	5	3.57

Valuation & Earnings

This table compares Kering and Burberry Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kering	$18.61 billion	2.37	$1.23 billion	N/A	N/A
Burberry Group	$3.14 billion	1.83	-$95.68 million	N/A	N/A

Kering has higher revenue and earnings than Burberry Group.

Institutional and Insider Ownership

1.0% of Kering shares are held by institutional investors. Comparatively, 10.3% of Burberry Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Kering beats Burberry Group on 5 of the 8 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 Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.