Comparing Next (OTCMKTS:NXGPY) & Kering (OTCMKTS:PPRUY)

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

Institutional & Insider Ownership

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

Volatility and Risk

Kering has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Next has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kering	$16.60 billion	2.14	$81.46 million	N/A	N/A
Next	$9.16 billion	2.60	$577.17 million	N/A	N/A

Next has lower revenue, but higher earnings than Kering.

Profitability

This table compares Kering and Next’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
Next	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Kering and Next, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kering	1	6	2	0	2.11
Next	0	2	0	0	2.00

Dividends

Kering pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Next pays an annual dividend of $1.03 per share and has a dividend yield of 1.0%.

Summary

Kering beats Next 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 Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.