Genesco (NYSE:GCO) versus Kering (OTCMKTS:PPRUY) Head to Head Comparison

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesco	1	3	0	1	2.20
Kering	3	4	1	1	2.00

Genesco presently has a consensus price target of $36.00, indicating a potential upside of 28.88%. Given Genesco’s stronger consensus rating and higher probable upside, analysts clearly believe Genesco is more favorable than Kering.

Profitability

This table compares Genesco and Kering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genesco	N/A	2.11%	0.78%
Kering	N/A	N/A	N/A

Insider & Institutional Ownership

94.5% of Genesco shares are held by institutional investors. Comparatively, 1.0% of Kering shares are held by institutional investors. 23.1% of Genesco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Genesco 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
Genesco	$2.33 billion	0.13	-$18.89 million	($0.18)	-155.18
Kering	$16.60 billion	2.41	$81.44 million	N/A	N/A

Kering has higher revenue and earnings than Genesco.

Volatility & Risk

Genesco has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, Kering has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Summary

Genesco beats Kering on 7 of the 11 factors compared between the two stocks.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.

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.