The shares of Franklin Resources, Inc. (NYSE:BEN) and Delek US Holdings, Inc. (NYSE:DK) were among the active stocks of the last trading sessions. Franklin Resources, Inc. (NYSE:BEN) soared to 1.34% closing at the price of $30.94 whereas the shares of Delek US Holdings, Inc. (NYSE:DK) declined -3.82% with the decrease of -1.64 points closing at the price of $41.28. Franklin Resources, Inc. has currently decrease -6.5% in its stock over the period of 6-months while its rival Delek US Holdings, Inc. subtracted -6.42% 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 Franklin Resources, Inc. (NYSE:BEN) is 11% while the ROI of Delek US Holdings, Inc. (NYSE:DK) is 1.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BEN’s EBITDA Margin is 4.08 whereas DK’s is 7.42.
Both the profitability ratios suggest a mixed sentiment for Franklin Resources, Inc. (NYSE:BEN) and Delek US Holdings, Inc. (NYSE:DK).
EPS & Surprise Factor
Franklin Resources, Inc. (NYSE:BEN) reported $0.75/share EPS for the previous quarter where analysts were predicting an EPS to be $0.75/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Delek US Holdings, Inc. (NYSE:DK) reported EPS of $1.36/share in the last quarter. The analysts projected EPS of $1.17/share depicting a Surprise of 16.2 Percent.
Taking a look at Earnings per Share, Delek US Holdings, Inc. tends to be beating the analyst estimates more than Franklin Resources, Inc.. so DK is more profitable than BEN.
Technical Analysis of Franklin Resources, Inc. & Delek US Holdings, Inc.
Moving average convergence divergence (MACD) shows that Franklin Resources, Inc. (NYSE:BEN) is on a PRICE RELATIVITY trend While Delek US Holdings, Inc. (NYSE:DK) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Franklin Resources, Inc. was in BEARISH territory and Delek US Holdings, Inc. was in BEARISH territory.
BEN’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While DK’s candle is BEARISH with MEDIUM.
EPS Growth Rate: BEN’s -0.47% versus DK’s 63.29%
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 Franklin Resources, Inc. (NYSE:BEN) is predicted at -0.47% while Delek US Holdings, Inc. (NYSE:DK) stands at 63.29%. These numbers suggest that DK 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 BEN stands at 0 while DK is at 1.4 whereas the debt ratio of the prior is 0.07 while the debt ratio of the later is 1.27.
The values of the both ratios suggest that DK 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 3.4 for BEN and 1.7 for DK which means BEN has Sell rating whereas DK 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 BEN is $32.08 which is 3.55% of its current price while DK has price target of 62.29 which is 33.73% 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.
BEN currently has price to earning P/E ratio of 9.69 whereas DK has 16.67 while the forward P/E ratio for the prior stands at 10.13 and for the later it depicts the value of 5.06.
The price to Book P/B for BEN is 1.67, Price to Sale is at 2.55 and for DK these ratios stand at 2.16 and 0.36.