Performance Comparison of NII Holdings, Inc. (NIHD) and Kimco Realty Corporation (KIM)

The shares of NII Holdings, Inc. (NASDAQ:NIHD) and Kimco Realty Corporation (NYSE:KIM) were among the active stocks of the last trading sessions. NII Holdings, Inc. (NASDAQ:NIHD) declined to -5.26% closing at the price of $7.38 whereas the shares of Kimco Realty Corporation (NYSE:KIM) soared 0.88% with the increase of 0.14 points closing at the price of $16.01. NII Holdings, Inc. has currently increase 141.97% in its stock over the period of 6-months while its rival Kimco Realty Corporation added 10.64% 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 NII Holdings, Inc. (NASDAQ:NIHD) is -43.3% while the ROI of Kimco Realty Corporation (NYSE:KIM) is 3.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NIHD’s EBITDA Margin is -15.59 whereas KIM’s is 14.81.

Both the profitability ratios suggest that Kimco Realty Corporation (NYSE:KIM) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

NII Holdings, Inc. (NASDAQ:NIHD) reported $-0.55/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.26/share Thus lagging the analyst Estimates with a Surprise Factor of -111.5 Percent. While, Kimco Realty Corporation (NYSE:KIM) reported EPS of $0.19/share in the last quarter. The analysts projected EPS of $0.13/share depicting a Surprise of 46.2 Percent.

Taking a look at Earnings per Share, Kimco Realty Corporation tends to be beating the analyst estimates more than NII Holdings, Inc.. so KIM is more profitable than NIHD.

Technical Analysis of NII Holdings, Inc. & Kimco Realty Corporation

Moving average convergence divergence (MACD) shows that NII Holdings, Inc. (NASDAQ:NIHD) is on a PRICE RELATIVITY trend While Kimco Realty Corporation (NYSE:KIM) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the NII Holdings, Inc. was in BULLISH territory and Kimco Realty Corporation was in BULLISH territory.

NIHD’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While KIM’s candle is BEARISH with MEDIUM.

EPS Growth Rate: NIHD’s 0% versus KIM’s 4.6%

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 NII Holdings, Inc. (NASDAQ:NIHD) is predicted at 0% while Kimco Realty Corporation (NYSE:KIM) stands at 4.6%. These numbers suggest that KIM 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 NIHD stands at 1.4 while KIM is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.94.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 4 for NIHD and 2.8 for KIM which means NIHD has Sell rating whereas KIM 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 NIHD is $1.25 which is -490.4% of its current price while KIM has price target of 17 which is 5.82% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

NIHD currently has price to earning P/E ratio of 0 whereas KIM has 29.81 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 25.58.

The price to Book P/B for NIHD is 0, Price to Sale is at 0.87 and for KIM these ratios stand at 1.24 and 5.72.