Which Company’s Stock is more Profitable? New York Times Company (The) (NYT) or Honeywell International Inc. (HON)

The shares of New York Times Company (The) (NYSE:NYT) and Honeywell International Inc. (NYSE:HON) were among the active stocks of the last trading sessions. New York Times Company (The) (NYSE:NYT) soared to 0.83% closing at the price of $25.53 whereas the shares of Honeywell International Inc. (NYSE:HON) declined -2.38% with the decrease of -3.92 points closing at the price of $160.94. New York Times Company (The) has currently increase 11.97% in its stock over the period of 6-months while its rival Honeywell International Inc. added 12.8% 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 New York Times Company (The) (NYSE:NYT) is 6.7% while the ROI of Honeywell International Inc. (NYSE:HON) is 9.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NYT’s EBITDA Margin is 14.74 whereas HON’s is 14.93.

Both the profitability ratios suggest that Honeywell International Inc. (NYSE:HON) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

New York Times Company (The) (NYSE:NYT) reported $0.17/share EPS for the previous quarter where analysts were predicting an EPS to be $0.15/share Thus beating the analyst Estimates with a Surprise Factor of 13.3 Percent. While, Honeywell International Inc. (NYSE:HON) reported EPS of $2.12/share in the last quarter. The analysts projected EPS of $2.01/share depicting a Surprise of 5.5 Percent.

Taking a look at Earnings per Share, New York Times Company (The) tends to be beating the analyst estimates more than Honeywell International Inc.. so NYT is more profitable than HON.

Technical Analysis of New York Times Company (The) & Honeywell International Inc.

Moving average convergence divergence (MACD) shows that New York Times Company (The) (NYSE:NYT) is on a PRICE RELATIVITY trend While Honeywell International Inc. (NYSE:HON) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the New York Times Company (The) was in BULLISH territory and Honeywell International Inc. was in BEARISH territory.

NYT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While HON’s candle is BEARISH with HIGH.

EPS Growth Rate: NYT’s 16.1% versus HON’s 10.42%

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 New York Times Company (The) (NYSE:NYT) is predicted at 16.1% while Honeywell International Inc. (NYSE:HON) stands at 10.42%. These numbers suggest that NYT 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 NYT stands at 2 while HON is at 1.4 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.97.

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 2.7 for NYT and 1.9 for HON which means NYT has Hold rating whereas HON 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 NYT is $24.8 which is -2.94% of its current price while HON has price target of 178.83 which is 10% 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.

NYT currently has price to earning P/E ratio of 46.76 whereas HON has 37.14 while the forward P/E ratio for the prior stands at 26.08 and for the later it depicts the value of 18.19.

The price to Book P/B for NYT is 4.3, Price to Sale is at 2.46 and for HON these ratios stand at 6.82 and 2.84.