The shares of Juniper Networks, Inc. (NYSE:JNPR) and Broadridge Financial Solutions, Inc. (NYSE:BR) were among the active stocks of the last trading sessions. Juniper Networks, Inc. (NYSE:JNPR) soared to 1.11% closing at the price of $30.15 whereas the shares of Broadridge Financial Solutions, Inc. (NYSE:BR) declined -9.7% with the decrease of -11.31 points closing at the price of $105.27. Juniper Networks, Inc. has currently increase 15.21% in its stock over the period of 6-months while its rival Broadridge Financial Solutions, Inc. subtracted -7.56% 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 Juniper Networks, Inc. (NYSE:JNPR) is 9.3% while the ROI of Broadridge Financial Solutions, Inc. (NYSE:BR) is 22.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, JNPR’s EBITDA Margin is 9.27 whereas BR’s is 17.83.
Both the profitability ratios suggest that Broadridge Financial Solutions, Inc. (NYSE:BR) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Juniper Networks, Inc. (NYSE:JNPR) reported $0.54/share EPS for the previous quarter where analysts were predicting an EPS to be $0.45/share Thus beating the analyst Estimates with a Surprise Factor of 20 Percent. While, Broadridge Financial Solutions, Inc. (NYSE:BR) reported EPS of $0.79/share in the last quarter. The analysts projected EPS of $0.68/share depicting a Surprise of 16.2 Percent.
Taking a look at Earnings per Share, Juniper Networks, Inc. tends to be beating the analyst estimates more than Broadridge Financial Solutions, Inc.. so JNPR is more profitable than BR.
Technical Analysis of Juniper Networks, Inc. & Broadridge Financial Solutions, Inc.
Moving average convergence divergence (MACD) shows that Juniper Networks, Inc. (NYSE:JNPR) is on a PRICE RELATIVITY trend While Broadridge Financial Solutions, Inc. (NYSE:BR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Juniper Networks, Inc. was in BULLISH territory and Broadridge Financial Solutions, Inc. was in BEARISH territory.
JNPR’s current statistics gauge that the stock candle is NEUTRAL with HIGH volatility. While BR’s candle is BEARISH with HIGH.
EPS Growth Rate: JNPR’s 13.55% versus BR’s 13.35%
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 Juniper Networks, Inc. (NYSE:JNPR) is predicted at 13.55% while Broadridge Financial Solutions, Inc. (NYSE:BR) stands at 13.35%. These numbers suggest that JNPR 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 JNPR stands at 2.3 while BR is at 1.3 whereas the debt ratio of the prior is 0.48 while the debt ratio of the later is 0.
The values of the both ratios suggest that JNPR 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 2.9 for JNPR and 2.7 for BR which means JNPR has Hold rating whereas BR 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 JNPR is $27.98 which is -7.76% of its current price while BR has price target of 134.6 which is 21.79% 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.
JNPR currently has price to earning P/E ratio of 20.82 whereas BR has 28.63 while the forward P/E ratio for the prior stands at 14.79 and for the later it depicts the value of 20.57.
The price to Book P/B for JNPR is 2.38, Price to Sale is at 2.2 and for BR these ratios stand at 11.26 and 2.84.