The shares of Allegheny Technologies Incorporated (NYSE:ATI) and Harley-Davidson, Inc. (NYSE:HOG) were among the active stocks of the last trading sessions. Allegheny Technologies Incorporated (NYSE:ATI) declined to -4.07% closing at the price of $27.08 whereas the shares of Harley-Davidson, Inc. (NYSE:HOG) declined -0.24% with the decrease of -0.1 points closing at the price of $40.86. Allegheny Technologies Incorporated has currently decrease -4.65% in its stock over the period of 6-months while its rival Harley-Davidson, Inc. added 0.22% 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 Allegheny Technologies Incorporated (NYSE:ATI) is 1.4% while the ROI of Harley-Davidson, Inc. (NYSE:HOG) is 6.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ATI’s EBITDA Margin is 11.41 whereas HOG’s is 12.16.
Both the profitability ratios suggest that Harley-Davidson, Inc. (NYSE:HOG) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Allegheny Technologies Incorporated (NYSE:ATI) reported $0.37/share EPS for the previous quarter where analysts were predicting an EPS to be $0.39/share Thus lagging the analyst Estimates with a Surprise Factor of -5.1 Percent. While, Harley-Davidson, Inc. (NYSE:HOG) reported EPS of $0.78/share in the last quarter. The analysts projected EPS of $0.53/share depicting a Surprise of 47.2 Percent.
Taking a look at Earnings per Share, Harley-Davidson, Inc. tends to be beating the analyst estimates more than Allegheny Technologies Incorporated. so HOG is more profitable than ATI.
Technical Analysis of Allegheny Technologies Incorporated & Harley-Davidson, Inc.
Moving average convergence divergence (MACD) shows that Allegheny Technologies Incorporated (NYSE:ATI) is on a PRICE RELATIVITY trend While Harley-Davidson, Inc. (NYSE:HOG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Allegheny Technologies Incorporated was in BULLISH territory and Harley-Davidson, Inc. was in BULLISH territory.
ATI’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HOG’s candle is BEARISH with HIGH.
EPS Growth Rate: ATI’s 0% versus HOG’s 10.65%
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 Allegheny Technologies Incorporated (NYSE:ATI) is predicted at 0% while Harley-Davidson, Inc. (NYSE:HOG) stands at 10.65%. These numbers suggest that HOG 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 ATI stands at 2.9 while HOG is at 1.4 whereas the debt ratio of the prior is 0.78 while the debt ratio of the later is 3.3.
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 2.2 for ATI and 2.7 for HOG which means ATI has Hold rating whereas HOG 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 ATI is $34.89 which is 22.38% of its current price while HOG has price target of 42.93 which is 4.82% 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.
ATI currently has price to earning P/E ratio of 21.01 whereas HOG has 11.58 while the forward P/E ratio for the prior stands at 12.39 and for the later it depicts the value of 10.88.
The price to Book P/B for ATI is 1.71, Price to Sale is at 0.87 and for HOG these ratios stand at 3.15 and 1.17.