The shares of Talend S.A. (NASDAQ:TLND) and Emerson Electric Company (NYSE:EMR) were among the active stocks of the last trading sessions. Talend S.A. (NASDAQ:TLND) declined to -30.95% closing at the price of $43.43 whereas the shares of Emerson Electric Company (NYSE:EMR) declined -0.16% with the decrease of -0.11 points closing at the price of $69.76. Talend S.A. has currently decrease -24.25% in its stock over the period of 6-months while its rival Emerson Electric Company subtracted -3.11% 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 Talend S.A. (NASDAQ:TLND) is 0% while the ROI of Emerson Electric Company (NYSE:EMR) is 13.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TLND’s EBITDA Margin is -52.5 whereas EMR’s is 12.9.
Both the profitability ratios suggest that Emerson Electric Company (NYSE:EMR) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Talend S.A. (NASDAQ:TLND) reported $-0.09/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.1/share Thus beating the analyst Estimates with a Surprise Factor of 10 Percent. While, Emerson Electric Company (NYSE:EMR) reported EPS of $0.89/share in the last quarter. The analysts projected EPS of $0.89/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Talend S.A. tends to be beating the analyst estimates more than Emerson Electric Company. so TLND is more profitable than EMR.
Technical Analysis of Talend S.A. & Emerson Electric Company
Moving average convergence divergence (MACD) shows that Talend S.A. (NASDAQ:TLND) is on a PRICE RELATIVITY trend While Emerson Electric Company (NYSE:EMR) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Talend S.A. was in BEARISH territory and Emerson Electric Company was in BULLISH territory.
TLND’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While EMR’s candle is BULLISH with HIGH.
EPS Growth Rate: TLND’s 30% versus EMR’s 17.24%
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 Talend S.A. (NASDAQ:TLND) is predicted at 30% while Emerson Electric Company (NYSE:EMR) stands at 17.24%. These numbers suggest that TLND 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 TLND stands at 1.2 while EMR is at 1.2 whereas the debt ratio of the prior is 0.03 while the debt ratio of the later is 0.71.
The values of the both ratios suggest that EMR 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 1.9 for TLND and 2.3 for EMR which means TLND has Buy rating whereas EMR 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 TLND is $68.86 which is 36.93% of its current price while EMR has price target of 79.95 which is 12.75% 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.
TLND currently has price to earning P/E ratio of 0 whereas EMR has 21.79 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 18.63.
The price to Book P/B for TLND is 42.17, Price to Sale is at 7.44 and for EMR these ratios stand at 5.22 and 2.6.