The shares of Invesco Plc (NYSE:IVZ) and Nielsen N.V. (NYSE:NLSN) were among the active stocks of the last trading sessions. Invesco Plc (NYSE:IVZ) declined to -1.64% closing at the price of $21.62 whereas the shares of Nielsen N.V. (NYSE:NLSN) declined -1.72% with the decrease of -0.46 points closing at the price of $26.3. Invesco Plc has currently decrease -24.06% in its stock over the period of 6-months while its rival Nielsen N.V. subtracted -12.62% 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 Invesco Plc (NYSE:IVZ) is 5.6% while the ROI of Nielsen N.V. (NYSE:NLSN) is 7.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IVZ’s EBITDA Margin is 10.09 whereas NLSN’s is 10.79.
Both the profitability ratios suggest that Nielsen N.V. (NYSE:NLSN) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Invesco Plc (NYSE:IVZ) reported $0.66/share EPS for the previous quarter where analysts were predicting an EPS to be $0.66/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Nielsen N.V. (NYSE:NLSN) reported EPS of $0.27/share in the last quarter. The analysts projected EPS of $0.25/share depicting a Surprise of 8 Percent.
Taking a look at Earnings per Share, Nielsen N.V. tends to be beating the analyst estimates more than Invesco Plc. so NLSN is more profitable than IVZ.
Technical Analysis of Invesco Plc & Nielsen N.V.
Moving average convergence divergence (MACD) shows that Invesco Plc (NYSE:IVZ) is on a PRICE RELATIVITY trend While Nielsen N.V. (NYSE:NLSN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Invesco Plc was in BULLISH territory and Nielsen N.V. was in BULLISH territory.
IVZ’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While NLSN’s candle is BEARISH with HIGH.
EPS Growth Rate: IVZ’s 5.58% versus NLSN’s 12.3%
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 Invesco Plc (NYSE:IVZ) is predicted at 5.58% while Nielsen N.V. (NYSE:NLSN) stands at 12.3%. These numbers suggest that NLSN 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 IVZ stands at 0 while NLSN is at 1.1 whereas the debt ratio of the prior is 0.85 while the debt ratio of the later is 2.14.
The values of the both ratios suggest that NLSN 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 2.3 for IVZ and 2.1 for NLSN which means IVZ has Hold rating whereas NLSN 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 IVZ is $26.25 which is 17.64% of its current price while NLSN has price target of 27.97 which is 5.97% 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.
IVZ currently has price to earning P/E ratio of 8.53 whereas NLSN has 22.08 while the forward P/E ratio for the prior stands at 7.94 and for the later it depicts the value of 21.16.
The price to Book P/B for IVZ is 1, Price to Sale is at 1.66 and for NLSN these ratios stand at 2.32 and 1.44.