Which Stock is better? Floor & Decor Holdings, Inc. (FND) and Anheuser-Busch Inbev SA (BUD)

The shares of Floor & Decor Holdings, Inc. (NYSE:FND) and Anheuser-Busch Inbev SA (NYSE:BUD) were among the active stocks of the last trading sessions. Floor & Decor Holdings, Inc. (NYSE:FND) soared to 0.87% closing at the price of $28.83 whereas the shares of Anheuser-Busch Inbev SA (NYSE:BUD) soared 0.47% with the increase of 0.41 points closing at the price of $87.06. Floor & Decor Holdings, Inc. has currently decrease -48.36% in its stock over the period of 6-months while its rival Anheuser-Busch Inbev SA subtracted -19.63% 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 Floor & Decor Holdings, Inc. (NYSE:FND) is 15.6% while the ROI of Anheuser-Busch Inbev SA (NYSE:BUD) is 7.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FND’s EBITDA Margin is 16.47 whereas BUD’s is 13.21.

Both the profitability ratios suggest that Floor & Decor Holdings, Inc. (NYSE:FND) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Floor & Decor Holdings, Inc. (NYSE:FND) reported $0.27/share EPS for the previous quarter where analysts were predicting an EPS to be $0.25/share Thus beating the analyst Estimates with a Surprise Factor of 8 Percent. While, Anheuser-Busch Inbev SA (NYSE:BUD) reported EPS of $1.1/share in the last quarter. The analysts projected EPS of $1.11/share depicting a Surprise of -0.9 Percent.

Taking a look at Earnings per Share, Floor & Decor Holdings, Inc. tends to be beating the analyst estimates more than Anheuser-Busch Inbev SA. so FND is more profitable than BUD.

Technical Analysis of Floor & Decor Holdings, Inc. & Anheuser-Busch Inbev SA

Moving average convergence divergence (MACD) shows that Floor & Decor Holdings, Inc. (NYSE:FND) is on a PRICE RELATIVITY trend While Anheuser-Busch Inbev SA (NYSE:BUD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Floor & Decor Holdings, Inc. was in BEARISH territory and Anheuser-Busch Inbev SA was in BEARISH territory.

FND’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While BUD’s candle is BULLISH with LOW.

EPS Growth Rate: FND’s 32.14% versus BUD’s 8.5%

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 Floor & Decor Holdings, Inc. (NYSE:FND) is predicted at 32.14% while Anheuser-Busch Inbev SA (NYSE:BUD) stands at 8.5%. These numbers suggest that FND 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 FND stands at 1.5 while BUD is at 0.7 whereas the debt ratio of the prior is 0.3 while the debt ratio of the later is 1.71.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 2.1 for FND and 1.9 for BUD which means FND has Hold rating whereas BUD 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 FND is $47 which is 38.66% of its current price while BUD has price target of 112.16 which is 22.38% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

FND currently has price to earning P/E ratio of 24.09 whereas BUD has 21.78 while the forward P/E ratio for the prior stands at 23.91 and for the later it depicts the value of 17.36.

The price to Book P/B for FND is 5.21, Price to Sale is at 1.79 and for BUD these ratios stand at 2.51 and 2.61.