Contrasting Kering (PPRUY) and Fanhua (FANH)

Kering (OTCMKTS: PPRUY) and Fanhua (NASDAQ:FANH) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

0.0% of Kering shares are owned by institutional investors. Comparatively, 25.3% of Fanhua shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kering 0 0 2 0 3.00
Fanhua 0 0 1 0 3.00

Fanhua has a consensus price target of $38.00, indicating a potential upside of 29.21%. Given Fanhua’s higher probable upside, analysts clearly believe Fanhua is more favorable than Kering.

Dividends

Kering pays an annual dividend of $0.69 per share and has a dividend yield of 1.1%. Fanhua pays an annual dividend of $0.78 per share and has a dividend yield of 2.7%.

Volatility and Risk

Kering has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Fanhua has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kering and Fanhua’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kering $17.49 billion 4.51 $2.02 billion N/A N/A
Fanhua $628.39 million 2.73 $69.04 million N/A N/A

Kering has higher revenue and earnings than Fanhua.

Profitability

This table compares Kering and Fanhua’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
Fanhua 14.10% 12.97% 10.50%

Summary

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

About Kering

Kering SA develops, designs, manufactures, markets, and sells apparel and accessories worldwide. The company offers shoes; leather goods, including handbags and wallets, and other leather products; eyewear and textile accessories; jewelry and watches; and outerwear, denims, T-shirts, and formalwear for men, as well as ready-to-wear products for women. It also provides perfumes and cosmetics; and sports products. The company provides its products under the Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin, and Ulysse Nardin, Puma, Volcom, Cobra, and Kering brand names. It sells its products through department stores, multi-brand stores, and franchise stores, as well as retail channels and e-commerce Websites. 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 Fanhua

Fanhua Inc. distributes insurance products in China. It operates through three segments: Insurance Agency, Insurance Brokerage; and Claims Adjusting. The Insurance Agency segment provides property and casualty insurance products, including automobile, individual accident, travel, disability income, commercial property, construction, and other property and casualty products; and life insurance products that consist of individual whole life, individual term life, individual endowment life, and individual education annuity, as well as group life and participating insurance products. The Insurance Brokerage segment provides property and casualty, group life, liability, and credit insurance products to corporate clients; and offers risk management services to enterprises in various industries, as well as reinsurance brokerage services to insurance companies. Its products include commercial property, cargo, hull, liability, construction and erection, credit, extended warranty, and bank account crime insurance. The Claims Adjusting segment offers pre-underwriting survey, claims adjusting, disposal of residual value, loading and unloading supervision, and consulting services. The company also operates an online insurance marketplace baoxian.com, which allows customers to search for, and purchase a range of insurance products. In addition, it provides vehicle related value-added services; and distributes wealth management products. As of March 31, 2017, it consisted of 31 insurance agencies, 2 insurance brokerages, and 3 claims adjusting firms, with 959 sales and service outlets, 280,196 registered independent sales agents, 1,165 brokers, and 1,241 in-house claims adjustors. The company was formerly known as CNinsure Inc. and changed its name to Fanhua Inc. in December 2016. Fanhua Inc. was founded in 1998 and is headquartered in Guangzhou, China.

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