The shares of Kohl’s Corporation (NYSE:KSS) and Realogy Holdings Corp. (NYSE:RLGY) were among the active stocks of the last trading sessions. Kohl’s Corporation (NYSE:KSS) declined to -0.15% closing at the price of $75.62 whereas the shares of Realogy Holdings Corp. (NYSE:RLGY) soared 5.24% with the increase of 1 points closing at the price of $20.07. Kohl’s Corporation has currently increase 19.84% in its stock over the period of 6-months while its rival Realogy Holdings Corp. subtracted -19.14% 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 Kohl’s Corporation (NYSE:KSS) is 10.3% while the ROI of Realogy Holdings Corp. (NYSE:RLGY) is 6.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KSS’s EBITDA Margin is 6.09 whereas RLGY’s is 8.56.
Both the profitability ratios suggest a mixed sentiment for Kohl’s Corporation (NYSE:KSS) and Realogy Holdings Corp. (NYSE:RLGY).
EPS & Surprise Factor
Kohl’s Corporation (NYSE:KSS) reported $1.76/share EPS for the previous quarter where analysts were predicting an EPS to be $1.64/share Thus beating the analyst Estimates with a Surprise Factor of 7.3 Percent. While, Realogy Holdings Corp. (NYSE:RLGY) reported EPS of $1/share in the last quarter. The analysts projected EPS of $0.98/share depicting a Surprise of 2 Percent.
Taking a look at Earnings per Share, Kohl’s Corporation tends to be beating the analyst estimates more than Realogy Holdings Corp.. so KSS is more profitable than RLGY.
Technical Analysis of Kohl’s Corporation & Realogy Holdings Corp.
Moving average convergence divergence (MACD) shows that Kohl’s Corporation (NYSE:KSS) is on a PRICE RELATIVITY trend While Realogy Holdings Corp. (NYSE:RLGY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Kohl’s Corporation was in BULLISH territory and Realogy Holdings Corp. was in BULLISH territory.
KSS’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While RLGY’s candle is BULLISH with HIGH.
EPS Growth Rate: KSS’s 11.09% versus RLGY’s 20%
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 Kohl’s Corporation (NYSE:KSS) is predicted at 11.09% while Realogy Holdings Corp. (NYSE:RLGY) stands at 20%. These numbers suggest that RLGY 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 KSS stands at 1.8 while RLGY is at 0.6 whereas the debt ratio of the prior is 0.72 while the debt ratio of the later is 1.58.
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 2.5 for KSS and 2.8 for RLGY which means KSS has Hold rating whereas RLGY 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 KSS is $82.06 which is 7.85% of its current price while RLGY has price target of 27.57 which is 27.2% 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.
KSS currently has price to earning P/E ratio of 15.47 whereas RLGY has 10.57 while the forward P/E ratio for the prior stands at 13 and for the later it depicts the value of 9.07.
The price to Book P/B for KSS is 2.27, Price to Sale is at 0.64 and for RLGY these ratios stand at 1.04 and 0.4.