The shares of Sogou Inc. (NYSE:SOGO) and Kohl’s Corporation (NYSE:KSS) were among the active stocks of the last trading sessions. Sogou Inc. (NYSE:SOGO) declined to -6.74% closing at the price of $6.36 whereas the shares of Kohl’s Corporation (NYSE:KSS) declined -1.36% with the decrease of -0.98 points closing at the price of $70.94. Sogou Inc. has currently decrease -25.35% in its stock over the period of 6-months while its rival Kohl’s Corporation added 11.93% 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 Sogou Inc. (NYSE:SOGO) is 8.7% while the ROI of Kohl’s Corporation (NYSE:KSS) is 10.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SOGO’s EBITDA Margin is 10.64 whereas KSS’s is 6.01.
Both the profitability ratios suggest a mixed sentiment for Sogou Inc. (NYSE:SOGO) and Kohl’s Corporation (NYSE:KSS).
EPS & Surprise Factor
Sogou Inc. (NYSE:SOGO) reported $0.09/share EPS for the previous quarter where analysts were predicting an EPS to be $0.07/share Thus beating the analyst Estimates with a Surprise Factor of 28.6 Percent. While, Kohl’s Corporation (NYSE:KSS) reported EPS of $1.76/share in the last quarter. The analysts projected EPS of $1.64/share depicting a Surprise of 7.3 Percent.
Taking a look at Earnings per Share, Sogou Inc. tends to be beating the analyst estimates more than Kohl’s Corporation. so SOGO is more profitable than KSS.
Technical Analysis of Sogou Inc. & Kohl’s Corporation
Moving average convergence divergence (MACD) shows that Sogou Inc. (NYSE:SOGO) is on a PRICE RELATIVITY trend While Kohl’s Corporation (NYSE:KSS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Sogou Inc. was in BEARISH territory and Kohl’s Corporation was in BEARISH territory.
SOGO’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While KSS’s candle is BEARISH with MEDIUM.
EPS Growth Rate: SOGO’s 35.23% versus KSS’s 11.09%
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 Sogou Inc. (NYSE:SOGO) is predicted at 35.23% while Kohl’s Corporation (NYSE:KSS) stands at 11.09%. These numbers suggest that SOGO 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 SOGO stands at 2.7 while KSS is at 1.8 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.72.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 2.6 for SOGO and 2.5 for KSS which means SOGO has Hold rating whereas KSS has Hold 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 SOGO is $10.77 which is 40.95% of its current price while KSS has price target of 82.06 which is 13.55% 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.
SOGO currently has price to earning P/E ratio of 29.58 whereas KSS has 14.51 while the forward P/E ratio for the prior stands at 13.92 and for the later it depicts the value of 12.21.
The price to Book P/B for SOGO is 2.56, Price to Sale is at 2.39 and for KSS these ratios stand at 2.13 and 0.59.