Reviewing Kering (OTCMKTS:PPRUY) & Zalando (OTCMKTS:ZLNDY)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Kering and Zalando, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kering	3	5	0	1	1.89
Zalando	0	0	1	1	3.50

Profitability

This table compares Kering and Zalando’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
Zalando	2.51%	10.45%	3.36%

Insider and Institutional 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kering	$18.61 billion	1.36	$1.23 billion	N/A	N/A
Zalando	$11.44 billion	0.70	$271.71 million	$0.56	27.09

Kering has higher revenue and earnings than Zalando.

Risk and Volatility

Kering has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Summary

Zalando beats Kering on 6 of the 10 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 Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.