The shares of Aflac Incorporated (NYSE:AFL) and New York REIT, Inc. (NYSE:NYRT) were among the active stocks of the last trading sessions. Aflac Incorporated (NYSE:AFL) soared to 0.64% closing at the price of $43.99 whereas the shares of New York REIT, Inc. (NYSE:NYRT) soared 0.57% with the increase of 0.08 points closing at the price of $14.18. Aflac Incorporated has currently decrease -1.7% in its stock over the period of 6-months while its rival New York REIT, Inc. subtracted -2.59% 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 Aflac Incorporated (NYSE:AFL) is 9.7% while the ROI of New York REIT, Inc. (NYSE:NYRT) is -5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, AFL’s EBITDA Margin is 8.49 whereas NYRT’s is 25.
Both the profitability ratios suggest a mixed sentiment for Aflac Incorporated (NYSE:AFL) and New York REIT, Inc. (NYSE:NYRT).
EPS & Surprise Factor
Technical Analysis of Aflac Incorporated & New York REIT, Inc.
Moving average convergence divergence (MACD) shows that Aflac Incorporated (NYSE:AFL) is on a PRICE RELATIVITY trend While New York REIT, Inc. (NYSE:NYRT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Aflac Incorporated was in BULLISH territory and New York REIT, Inc. was in BEARISH territory.
AFL’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While NYRT’s candle is BULLISH with HIGH.
EPS Growth Rate: AFL’s 8.5% versus NYRT’s 0%
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 Aflac Incorporated (NYSE:AFL) is predicted at 8.5% while New York REIT, Inc. (NYSE:NYRT) stands at 0%. These numbers suggest that AFL 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 AFL stands at 0 while NYRT is at 0 whereas the debt ratio of the prior is 0.23 while the debt ratio of the later is 0.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 2.8 for AFL and 2 for NYRT which means AFL has Hold rating whereas NYRT has Buy 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 AFL is $46.71 which is 5.82% of its current price while NYRT has price target of 26 which is 45.46% 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.
AFL currently has price to earning P/E ratio of 11.23 whereas NYRT has 0 while the forward P/E ratio for the prior stands at 10.55 and for the later it depicts the value of 0.
The price to Book P/B for AFL is 1.45, Price to Sale is at 1.53 and for NYRT these ratios stand at 0.25 and 1.35.