The shares of Fidelity National Financial, Inc. (NYSE:FNF) and Monster Beverage Corporation (NASDAQ:MNST) were among the active stocks of the last trading sessions. Fidelity National Financial, Inc. (NYSE:FNF) declined to -7.84% closing at the price of $35.01 whereas the shares of Monster Beverage Corporation (NASDAQ:MNST) declined -1.99% with the decrease of -1.07 points closing at the price of $52.83. Fidelity National Financial, Inc. has currently decrease -8.3% in its stock over the period of 6-months while its rival Monster Beverage Corporation subtracted -6.79% 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 Fidelity National Financial, Inc. (NYSE:FNF) is 11.2% while the ROI of Monster Beverage Corporation (NASDAQ:MNST) is 22.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FNF’s EBITDA Margin is 9.8 whereas MNST’s is 23.14.
Both the profitability ratios suggest that Monster Beverage Corporation (NASDAQ:MNST) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Fidelity National Financial, Inc. (NYSE:FNF) reported $0.86/share EPS for the previous quarter where analysts were predicting an EPS to be $0.82/share Thus beating the analyst Estimates with a Surprise Factor of 4.9 Percent. While, Monster Beverage Corporation (NASDAQ:MNST) reported EPS of $0.49/share in the last quarter. The analysts projected EPS of $0.47/share depicting a Surprise of 4.3 Percent.
Taking a look at Earnings per Share, Fidelity National Financial, Inc. tends to be beating the analyst estimates more than Monster Beverage Corporation. so FNF is more profitable than MNST.
Technical Analysis of Fidelity National Financial, Inc. & Monster Beverage Corporation
Moving average convergence divergence (MACD) shows that Fidelity National Financial, Inc. (NYSE:FNF) is on a PRICE RELATIVITY trend While Monster Beverage Corporation (NASDAQ:MNST) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Fidelity National Financial, Inc. was in BEARISH territory and Monster Beverage Corporation was in BEARISH territory.
FNF’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While MNST’s candle is BEARISH with HIGH.
EPS Growth Rate: FNF’s 13.7% versus MNST’s 17.09%
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 Fidelity National Financial, Inc. (NYSE:FNF) is predicted at 13.7% while Monster Beverage Corporation (NASDAQ:MNST) stands at 17.09%. These numbers suggest that MNST 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 FNF stands at 0 while MNST is at 3 whereas the debt ratio of the prior is 0.16 while the debt ratio of the later is 0.
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 for FNF and 2.1 for MNST which means FNF has Buy rating whereas MNST 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 FNF is $46.6 which is 24.87% of its current price while MNST has price target of 66 which is 19.95% 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.
FNF currently has price to earning P/E ratio of 19.64 whereas MNST has 31.92 while the forward P/E ratio for the prior stands at 11.58 and for the later it depicts the value of 26.65.
The price to Book P/B for FNF is 2.08, Price to Sale is at 1.41 and for MNST these ratios stand at 8.2 and 8.11.