The shares of Match Group, Inc. (NASDAQ:MTCH) and KBR, Inc. (NYSE:KBR) were among the active stocks of the last trading sessions. Match Group, Inc. (NASDAQ:MTCH) soared to 1.94% closing at the price of $51.4 whereas the shares of KBR, Inc. (NYSE:KBR) declined -3.98% with the decrease of -0.82 points closing at the price of $19.77. Match Group, Inc. has currently increase 14.63% in its stock over the period of 6-months while its rival KBR, Inc. added 15.95% 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 Match Group, Inc. (NASDAQ:MTCH) is 30.9% while the ROI of KBR, Inc. (NYSE:KBR) is 17%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, MTCH’s EBITDA Margin is 31.99 whereas KBR’s is 13.64.
Both the profitability ratios suggest that Match Group, Inc. (NASDAQ:MTCH) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Match Group, Inc. (NASDAQ:MTCH) reported $0.41/share EPS for the previous quarter where analysts were predicting an EPS to be $0.35/share Thus beating the analyst Estimates with a Surprise Factor of 17.1 Percent. While, KBR, Inc. (NYSE:KBR) reported EPS of $0.34/share in the last quarter. The analysts projected EPS of $0.34/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Match Group, Inc. tends to be beating the analyst estimates more than KBR, Inc.. so MTCH is more profitable than KBR.
Technical Analysis of Match Group, Inc. & KBR, Inc.
Moving average convergence divergence (MACD) shows that Match Group, Inc. (NASDAQ:MTCH) is on a PRICE RELATIVITY trend While KBR, Inc. (NYSE:KBR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Match Group, Inc. was in BEARISH territory and KBR, Inc. was in BEARISH territory.
MTCH’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While KBR’s candle is BEARISH with HIGH.
EPS Growth Rate: MTCH’s 24.59% versus KBR’s 5.33%
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 Match Group, Inc. (NASDAQ:MTCH) is predicted at 24.59% while KBR, Inc. (NYSE:KBR) stands at 5.33%. These numbers suggest that MTCH 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 MTCH stands at 1.5 while KBR is at 1.3 whereas the debt ratio of the prior is 2.23 while the debt ratio of the later is 0.67.
The values of the both ratios suggest that MTCH 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 2.4 for MTCH and 2.3 for KBR which means MTCH has Hold rating whereas KBR 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 MTCH is $53.62 which is 4.14% of its current price while KBR has price target of 22.83 which is 13.4% 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.
MTCH currently has price to earning P/E ratio of 24.44 whereas KBR has 8.27 while the forward P/E ratio for the prior stands at 29.76 and for the later it depicts the value of 12.35.
The price to Book P/B for MTCH is 25.32, Price to Sale is at 9.37 and for KBR these ratios stand at 1.73 and 0.66.