What is the fate of New York Times Company (The) (NYT) against Cosan Limited (CZZ)?

The shares of New York Times Company (The) (NYSE:NYT) and Cosan Limited (NYSE:CZZ) were among the active stocks of the last trading sessions. New York Times Company (The) (NYSE:NYT) declined to -0.25% closing at the price of $27.59 whereas the shares of Cosan Limited (NYSE:CZZ) declined -5.15% with the decrease of -0.44 points closing at the price of $8.1. New York Times Company (The) has currently increase 21.81% in its stock over the period of 6-months while its rival Cosan Limited subtracted -16.84% 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 New York Times Company (The) (NYSE:NYT) is 6.7% while the ROI of Cosan Limited (NYSE:CZZ) is 11.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, NYT’s EBITDA Margin is 16.18 whereas CZZ’s is 7.2.

Both the profitability ratios suggest a mixed sentiment for New York Times Company (The) (NYSE:NYT) and Cosan Limited (NYSE:CZZ).

EPS & Surprise Factor
Technical Analysis of New York Times Company (The) & Cosan Limited

Moving average convergence divergence (MACD) shows that New York Times Company (The) (NYSE:NYT) is on a PRICE RELATIVITY trend While Cosan Limited (NYSE:CZZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the New York Times Company (The) was in BULLISH territory and Cosan Limited was in BULLISH territory.

NYT’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CZZ’s candle is BULLISH with HIGH.

EPS Growth Rate: NYT’s 16.1% versus CZZ’s 11.73%

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 New York Times Company (The) (NYSE:NYT) is predicted at 16.1% while Cosan Limited (NYSE:CZZ) stands at 11.73%. These numbers suggest that NYT 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 NYT stands at 2 while CZZ is at 1.6 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 4.8.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 2.7 for NYT and 2.2 for CZZ which means NYT has Hold rating whereas CZZ 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 NYT is $26.6 which is -3.72% of its current price while CZZ has price target of 11.79 which is 31.3% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

NYT currently has price to earning P/E ratio of 55.63 whereas CZZ has 11.2 while the forward P/E ratio for the prior stands at 28.74 and for the later it depicts the value of 8.87.

The price to Book P/B for NYT is 4.64, Price to Sale is at 2.68 and for CZZ these ratios stand at 1.28 and 0.49.