The shares of Kimco Realty Corporation (NYSE:KIM) and CME Group Inc. (NASDAQ:CME) were among the active stocks of the last trading sessions. Kimco Realty Corporation (NYSE:KIM) soared to 0.49% closing at the price of $16.29 whereas the shares of CME Group Inc. (NASDAQ:CME) soared 0.39% with the increase of 0.74 points closing at the price of $189.43. Kimco Realty Corporation has currently increase 12.89% in its stock over the period of 6-months while its rival CME Group Inc. added 18.92% 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 Kimco Realty Corporation (NYSE:KIM) is 3.1% while the ROI of CME Group Inc. (NASDAQ:CME) is 5.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KIM’s EBITDA Margin is 14.81 whereas CME’s is 23.55.
Both the profitability ratios suggest that CME Group Inc. (NASDAQ:CME) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Kimco Realty Corporation (NYSE:KIM) reported $0.19/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus beating the analyst Estimates with a Surprise Factor of 46.2 Percent. While, CME Group Inc. (NASDAQ:CME) reported EPS of $1.45/share in the last quarter. The analysts projected EPS of $1.43/share depicting a Surprise of 1.4 Percent.
Taking a look at Earnings per Share, Kimco Realty Corporation tends to be beating the analyst estimates more than CME Group Inc.. so KIM is more profitable than CME.
Technical Analysis of Kimco Realty Corporation & CME Group Inc.
Moving average convergence divergence (MACD) shows that Kimco Realty Corporation (NYSE:KIM) is on a PRICE RELATIVITY trend While CME Group Inc. (NASDAQ:CME) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Kimco Realty Corporation was in BULLISH territory and CME Group Inc. was in BULLISH territory.
KIM’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While CME’s candle is BEARISH with HIGH.
EPS Growth Rate: KIM’s 4.6% versus CME’s 15.27%
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 Kimco Realty Corporation (NYSE:KIM) is predicted at 4.6% while CME Group Inc. (NASDAQ:CME) stands at 15.27%. These numbers suggest that CME 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 KIM stands at 0 while CME is at 1.1 whereas the debt ratio of the prior is 0.94 while the debt ratio of the later is 0.15.
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 KIM and 2.3 for CME which means KIM has Hold rating whereas CME 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 KIM is $17 which is 4.18% of its current price while CME has price target of 185.09 which is -2.34% 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.
KIM currently has price to earning P/E ratio of 30.34 whereas CME has 33.68 while the forward P/E ratio for the prior stands at 26.02 and for the later it depicts the value of 26.7.
The price to Book P/B for KIM is 1.27, Price to Sale is at 5.82 and for CME these ratios stand at 2.78 and 16.23.