The shares of ZTO Express (Cayman) Inc. (NYSE:ZTO) and F.N.B. Corporation (NYSE:FNB) were among the active stocks of the last trading sessions. ZTO Express (Cayman) Inc. (NYSE:ZTO) soared to 4.62% closing at the price of $15.64 whereas the shares of F.N.B. Corporation (NYSE:FNB) declined -3.16% with the decrease of -0.4 points closing at the price of $12.25. ZTO Express (Cayman) Inc. has currently decrease -1.76% in its stock over the period of 6-months while its rival F.N.B. Corporation subtracted -7.83% 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 ZTO Express (Cayman) Inc. (NYSE:ZTO) is 14.2% while the ROI of F.N.B. Corporation (NYSE:FNB) is 11.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ZTO’s EBITDA Margin is 13.76 whereas FNB’s is NOT AVAILABLE.
Both the profitability ratios suggest a mixed sentiment for ZTO Express (Cayman) Inc. (NYSE:ZTO) and F.N.B. Corporation (NYSE:FNB).
EPS & Surprise Factor
ZTO Express (Cayman) Inc. (NYSE:ZTO) reported $0.22/share EPS for the previous quarter where analysts were predicting an EPS to be $0.21/share Thus beating the analyst Estimates with a Surprise Factor of 4.8 Percent. While, F.N.B. Corporation (NYSE:FNB) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.27/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, ZTO Express (Cayman) Inc. tends to be beating the analyst estimates more than F.N.B. Corporation. so ZTO is more profitable than FNB.
Technical Analysis of ZTO Express (Cayman) Inc. & F.N.B. Corporation
Moving average convergence divergence (MACD) shows that ZTO Express (Cayman) Inc. (NYSE:ZTO) is on a PRICE RELATIVITY trend While F.N.B. Corporation (NYSE:FNB) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ZTO Express (Cayman) Inc. was in BEARISH territory and F.N.B. Corporation was in BEARISH territory.
ZTO’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While FNB’s candle is BEARISH with HIGH.
EPS Growth Rate: ZTO’s 3.53% versus FNB’s 9.5%
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 ZTO Express (Cayman) Inc. (NYSE:ZTO) is predicted at 3.53% while F.N.B. Corporation (NYSE:FNB) stands at 9.5%. These numbers suggest that FNB 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 ZTO stands at 4.7 while FNB is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.43.
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 1.9 for ZTO and 2 for FNB which means ZTO has Buy rating whereas FNB 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 ZTO is $23.42 which is 33.22% of its current price while FNB has price target of 15 which is 18.33% 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.
ZTO currently has price to earning P/E ratio of 19.31 whereas FNB has 12.47 while the forward P/E ratio for the prior stands at 15.91 and for the later it depicts the value of 10.39.
The price to Book P/B for ZTO is 2.57, Price to Sale is at 5.66 and for FNB these ratios stand at 0.91 and 3.63.