The shares of First Horizon National Corporation (NYSE:FHN) and Alta Mesa Resources, Inc. (NASDAQ:AMR) were among the active stocks of the last trading sessions. First Horizon National Corporation (NYSE:FHN) soared to 0.29% closing at the price of $17.31 whereas the shares of Alta Mesa Resources, Inc. (NASDAQ:AMR) soared 4.87% with the increase of 0.19 points closing at the price of $4.09. First Horizon National Corporation has currently decrease -8.12% in its stock over the period of 6-months while its rival Alta Mesa Resources, Inc. subtracted -44.88% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of First Horizon National Corporation (NYSE:FHN) is 14.7% while the ROI of Alta Mesa Resources, Inc. (NASDAQ:AMR) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FHN’s EBITDA Margin is NOT AVAILABLE whereas AMR’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for First Horizon National Corporation (NYSE:FHN) and Alta Mesa Resources, Inc. (NASDAQ:AMR).
EPS & Surprise Factor
First Horizon National Corporation (NYSE:FHN) reported $0.36/share EPS for the previous quarter where analysts were predicting an EPS to be $0.35/share Thus beating the analyst Estimates with a Surprise Factor of 2.9 Percent. While, Alta Mesa Resources, Inc. (NASDAQ:AMR) reported EPS of $0.22/share in the last quarter. The analysts projected EPS of $0.1/share depicting a Surprise of 120 Percent.
Taking a look at Earnings per Share, Alta Mesa Resources, Inc. tends to be beating the analyst estimates more than First Horizon National Corporation. so AMR is more profitable than FHN.
Technical Analysis of First Horizon National Corporation & Alta Mesa Resources, Inc.
Moving average convergence divergence (MACD) shows that First Horizon National Corporation (NYSE:FHN) is on a PRICE RELATIVITY trend While Alta Mesa Resources, Inc. (NASDAQ:AMR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the First Horizon National Corporation was in BEARISH territory and Alta Mesa Resources, Inc. was in BEARISH territory.
FHN’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While AMR’s candle is BULLISH with MEDIUM.
EPS Growth Rate: FHN’s 11.6% versus AMR’s 0%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of First Horizon National Corporation (NYSE:FHN) is predicted at 11.6% while Alta Mesa Resources, Inc. (NASDAQ:AMR) stands at 0%. These numbers suggest that FHN is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of FHN stands at 0 while AMR is at 0.9 whereas the debt ratio of the prior is 0.3 while the debt ratio of the later is 0.4.
The values of the both ratios suggest that AMR is more suitable investment when the liquidity and risk is the main concern.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.2 for FHN and 1.8 for AMR which means FHN has Hold rating whereas AMR has Buy rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for FHN is $20.29 which is 14.69% of its current price while AMR has price target of 8.68 which is 52.88% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
FHN currently has price to earning P/E ratio of 18.86 whereas AMR has 0 while the forward P/E ratio for the prior stands at 10.79 and for the later it depicts the value of 7.57.
The price to Book P/B for FHN is 1.35, Price to Sale is at 4.4 and for AMR these ratios stand at 0.45 and 4.11.