The shares of First Horizon National Corporation (NYSE:FHN) and DENTSPLY SIRONA Inc. (NASDAQ:XRAY) were among the active stocks of the last trading sessions. First Horizon National Corporation (NYSE:FHN) soared to 0.37% closing at the price of $16.46 whereas the shares of DENTSPLY SIRONA Inc. (NASDAQ:XRAY) declined -0.6% with the decrease of -0.21 points closing at the price of $35.03. First Horizon National Corporation has currently decrease -11.08% in its stock over the period of 6-months while its rival DENTSPLY SIRONA Inc. subtracted -25.34% 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 First Horizon National Corporation (NYSE:FHN) is 14.7% while the ROI of DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is -18%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, FHN’s EBITDA Margin is NOT AVAILABLE whereas XRAY’s is 11.64.
Both the profitability ratios suggest that First Horizon National Corporation (NYSE:FHN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
First Horizon National Corporation (NYSE:FHN) reported $0.36/share EPS for the previous quarter where analysts were predicting an EPS to be $0.36/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) reported EPS of $0.6/share in the last quarter. The analysts projected EPS of $0.59/share depicting a Surprise of 1.7 Percent.
Taking a look at Earnings per Share, DENTSPLY SIRONA Inc. tends to be beating the analyst estimates more than First Horizon National Corporation. so XRAY is more profitable than FHN.
Technical Analysis of First Horizon National Corporation & DENTSPLY SIRONA Inc.
Moving average convergence divergence (MACD) shows that First Horizon National Corporation (NYSE:FHN) is on a PRICE RELATIVITY trend While DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the First Horizon National Corporation was in BULLISH territory and DENTSPLY SIRONA Inc. was in BEARISH territory.
FHN’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While XRAY’s candle is BEARISH with HIGH.
EPS Growth Rate: FHN’s 10.45% versus XRAY’s -1.69%
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 First Horizon National Corporation (NYSE:FHN) is predicted at 10.45% while DENTSPLY SIRONA Inc. (NASDAQ:XRAY) stands at -1.69%. These numbers suggest that FHN 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 FHN stands at 0 while XRAY is at 1.7 whereas the debt ratio of the prior is 0.3 while the debt ratio of the later is 0.35.
The values of the both ratios suggest that XRAY 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 2.2 for FHN and 2.5 for XRAY which means FHN has Hold rating whereas XRAY 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 FHN is $18.89 which is 12.86% of its current price while XRAY has price target of 47.6 which is 26.41% 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.
FHN currently has price to earning P/E ratio of 11.25 whereas XRAY has 0 while the forward P/E ratio for the prior stands at 10.77 and for the later it depicts the value of 14.93.
The price to Book P/B for FHN is 1.29, Price to Sale is at 3.72 and for XRAY these ratios stand at 1.54 and 1.91.