The shares of AXA Equitable Holdings, Inc. (NYSE:EQH) and McDonald’s Corporation (NYSE:MCD) were among the active stocks of the last trading sessions. AXA Equitable Holdings, Inc. (NYSE:EQH) soared to 2.33% closing at the price of $20.61 whereas the shares of McDonald’s Corporation (NYSE:MCD) soared 1.07% with the increase of 1.87 points closing at the price of $176.75. AXA Equitable Holdings, Inc. has currently increase 0% in its stock over the period of 6-months while its rival McDonald’s Corporation added 7.12% 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 AXA Equitable Holdings, Inc. (NYSE:EQH) is 0% while the ROI of McDonald’s Corporation (NYSE:MCD) is 26.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EQH’s EBITDA Margin is NOT AVAILABLE whereas MCD’s is 16.88.
Both the profitability ratios suggest a mixed sentiment for AXA Equitable Holdings, Inc. (NYSE:EQH) and McDonald’s Corporation (NYSE:MCD).
EPS & Surprise Factor
AXA Equitable Holdings, Inc. (NYSE:EQH) reported $0.9/share EPS for the previous quarter where analysts were predicting an EPS to be $0.86/share Thus beating the analyst Estimates with a Surprise Factor of 4.7 Percent. While, McDonald’s Corporation (NYSE:MCD) reported EPS of $2.1/share in the last quarter. The analysts projected EPS of $1.99/share depicting a Surprise of 5.5 Percent.
Taking a look at Earnings per Share, McDonald’s Corporation tends to be beating the analyst estimates more than AXA Equitable Holdings, Inc.. so MCD is more profitable than EQH.
Technical Analysis of AXA Equitable Holdings, Inc. & McDonald’s Corporation
Moving average convergence divergence (MACD) shows that AXA Equitable Holdings, Inc. (NYSE:EQH) is on a PRICE RELATIVITY trend While McDonald’s Corporation (NYSE:MCD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the AXA Equitable Holdings, Inc. was in territory and McDonald’s Corporation was in BULLISH territory.
EQH’s current statistics gauge that the stock candle is with volatility. While MCD’s candle is BEARISH with MEDIUM.
EPS Growth Rate: EQH’s 7% versus MCD’s 9.3%
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 AXA Equitable Holdings, Inc. (NYSE:EQH) is predicted at 7% while McDonald’s Corporation (NYSE:MCD) stands at 9.3%. These numbers suggest that MCD 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 EQH stands at 0 while MCD is at 1.5 whereas the debt ratio of the prior is 0 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 2.3 for EQH and 2 for MCD which means EQH has Hold rating whereas MCD 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 EQH is $26.18 which is 21.28% of its current price while MCD has price target of 191.81 which is 7.85% 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.
EQH currently has price to earning P/E ratio of 13.53 whereas MCD has 23.48 while the forward P/E ratio for the prior stands at 5.17 and for the later it depicts the value of 21.47.
The price to Book P/B for EQH is 0.86, Price to Sale is at 1 and for MCD these ratios stand at 0 and 6.5.