Reviewing Hennes & Mauritz (OTCMKTS:HNNMY) & Kering (OTCMKTS:PPRUY)

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

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are owned by institutional investors. Comparatively, 1.0% of Kering shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	1.22	$1.11 billion	$0.14	27.50
Kering	$18.61 billion	2.45	$1.23 billion	N/A	N/A

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

Analyst Recommendations

This is a summary of current recommendations for Hennes & Mauritz and Kering, as provided by MarketBeat.com.

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

Risk & Volatility

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

Profitability

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

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

Dividends

Hennes & Mauritz pays an annual dividend of $0.08 per share and has a dividend yield of 2.1%. Kering pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Hennes & Mauritz pays out 57.1% of its earnings in the form of a dividend.

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.

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.