The shares of Turtle Beach Corporation (NASDAQ:HEAR) and News Corporation (NASDAQ:NWSA) were among the active stocks of the last trading sessions. Turtle Beach Corporation (NASDAQ:HEAR) soared to 4.53% closing at the price of $21.71 whereas the shares of News Corporation (NASDAQ:NWSA) soared 0.84% with the increase of 0.11 points closing at the price of $13.27. Turtle Beach Corporation has currently increase 212.82% in its stock over the period of 6-months while its rival News Corporation subtracted -19.62% 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 Turtle Beach Corporation (NASDAQ:HEAR) is 21.3% while the ROI of News Corporation (NASDAQ:NWSA) is -8.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HEAR’s EBITDA Margin is 8.52 whereas NWSA’s is 10.16.
Both the profitability ratios suggest a mixed sentiment for Turtle Beach Corporation (NASDAQ:HEAR) and News Corporation (NASDAQ:NWSA).
EPS & Surprise Factor
Turtle Beach Corporation (NASDAQ:HEAR) reported $0.91/share EPS for the previous quarter where analysts were predicting an EPS to be $0.77/share Thus beating the analyst Estimates with a Surprise Factor of 18.2 Percent. While, News Corporation (NASDAQ:NWSA) reported EPS of $0.08/share in the last quarter. The analysts projected EPS of $0.06/share depicting a Surprise of 33.3 Percent.
Taking a look at Earnings per Share, News Corporation tends to be beating the analyst estimates more than Turtle Beach Corporation. so NWSA is more profitable than HEAR.
Technical Analysis of Turtle Beach Corporation & News Corporation
Moving average convergence divergence (MACD) shows that Turtle Beach Corporation (NASDAQ:HEAR) is on a PRICE RELATIVITY trend While News Corporation (NASDAQ:NWSA) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Turtle Beach Corporation was in BULLISH territory and News Corporation was in BULLISH territory.
HEAR’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NWSA’s candle is BULLISH with HIGH.
EPS Growth Rate: HEAR’s 18% versus NWSA’s 23.3%
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 Turtle Beach Corporation (NASDAQ:HEAR) is predicted at 18% while News Corporation (NASDAQ:NWSA) stands at 23.3%. These numbers suggest that NWSA 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 HEAR stands at 1.7 while NWSA is at 1.3 whereas the debt ratio of the prior is 6.18 while the debt ratio of the later is 0.21.
The values of the both ratios suggest that HEAR 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 1.3 for HEAR and 2.9 for NWSA which means HEAR has Buy rating whereas NWSA 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 HEAR is $38.75 which is 43.97% of its current price while NWSA has price target of 15.67 which is 15.32% 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.
HEAR currently has price to earning P/E ratio of 8.73 whereas NWSA has 0 while the forward P/E ratio for the prior stands at 11.32 and for the later it depicts the value of 28.35.
The price to Book P/B for HEAR is 58.68, Price to Sale is at 1.3 and for NWSA these ratios stand at 0.83 and 0.86.