The shares of KKR & Co. L.P. (NYSE:KKR) and Hertz Global Holdings, Inc (NYSE:HTZ) were among the active stocks of the last trading sessions. KKR & Co. L.P. (NYSE:KKR) declined to -1.21% closing at the price of $24.44 whereas the shares of Hertz Global Holdings, Inc (NYSE:HTZ) declined -1.39% with the decrease of -0.23 points closing at the price of $16.29. KKR & Co. L.P. has currently increase 10.94% in its stock over the period of 6-months while its rival Hertz Global Holdings, Inc subtracted -7.86% 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 KKR & Co. L.P. (NYSE:KKR) is 2.9% while the ROI of Hertz Global Holdings, Inc (NYSE:HTZ) is 11.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KKR’s EBITDA Margin is NOT AVAILABLE whereas HTZ’s is 31.97.
Both the profitability ratios suggest a mixed sentiment for KKR & Co. L.P. (NYSE:KKR) and Hertz Global Holdings, Inc (NYSE:HTZ).
EPS & Surprise Factor
KKR & Co. L.P. (NYSE:KKR) reported $0.6/share EPS for the previous quarter where analysts were predicting an EPS to be $0.57/share Thus beating the analyst Estimates with a Surprise Factor of 5.3 Percent. While, Hertz Global Holdings, Inc (NYSE:HTZ) reported EPS of $2.14/share in the last quarter. The analysts projected EPS of $1.71/share depicting a Surprise of 25.1 Percent.
Taking a look at Earnings per Share, Hertz Global Holdings, Inc tends to be beating the analyst estimates more than KKR & Co. L.P.. so HTZ is more profitable than KKR.
Technical Analysis of KKR & Co. L.P. & Hertz Global Holdings, Inc
Moving average convergence divergence (MACD) shows that KKR & Co. L.P. (NYSE:KKR) is on a PRICE RELATIVITY trend While Hertz Global Holdings, Inc (NYSE:HTZ) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the KKR & Co. L.P. was in BULLISH territory and Hertz Global Holdings, Inc was in BULLISH territory.
KKR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While HTZ’s candle is BEARISH with HIGH.
EPS Growth Rate: KKR’s 4.72% versus HTZ’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 KKR & Co. L.P. (NYSE:KKR) is predicted at 4.72% while Hertz Global Holdings, Inc (NYSE:HTZ) stands at 0%. These numbers suggest that KKR 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 KKR stands at 0 while HTZ is at 0 whereas the debt ratio of the prior is 2.53 while the debt ratio of the later is 16.4.
The values of the both ratios suggest that HTZ 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 KKR and 3 for HTZ which means KKR has Buy rating whereas HTZ 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 KKR is $31.42 which is 22.22% of its current price while HTZ has price target of 21.83 which is 25.38% 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.
KKR currently has price to earning P/E ratio of 7.55 whereas HTZ has 1.2 while the forward P/E ratio for the prior stands at 13.06 and for the later it depicts the value of 59.24.
The price to Book P/B for KKR is 1.58, Price to Sale is at 5.93 and for HTZ these ratios stand at 1.29 and 0.15.