The shares of Smart Sand, Inc. (NASDAQ:SND) and Kellogg Company (NYSE:K) were among the active stocks of the last trading sessions. Smart Sand, Inc. (NASDAQ:SND) soared to 13.94% closing at the price of $3.27 whereas the shares of Kellogg Company (NYSE:K) soared 1.42% with the increase of 0.91 points closing at the price of $65.18. Smart Sand, Inc. has currently decrease -48.87% in its stock over the period of 6-months while its rival Kellogg Company added 6.17% 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 Smart Sand, Inc. (NASDAQ:SND) is 6.8% while the ROI of Kellogg Company (NYSE:K) is 14.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SND’s EBITDA Margin is 4.01 whereas K’s is 11.3.
Both the profitability ratios suggest that Kellogg Company (NYSE:K) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Smart Sand, Inc. (NASDAQ:SND) reported $0.26/share EPS for the previous quarter where analysts were predicting an EPS to be $0.28/share Thus lagging the analyst Estimates with a Surprise Factor of -7.1 Percent. While, Kellogg Company (NYSE:K) reported EPS of $1.06/share in the last quarter. The analysts projected EPS of $1.06/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Kellogg Company tends to be beating the analyst estimates more than Smart Sand, Inc.. so K is more profitable than SND.
Technical Analysis of Smart Sand, Inc. & Kellogg Company
Moving average convergence divergence (MACD) shows that Smart Sand, Inc. (NASDAQ:SND) is on a PRICE RELATIVITY trend While Kellogg Company (NYSE:K) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Smart Sand, Inc. was in BULLISH territory and Kellogg Company was in BEARISH territory.
SND’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While K’s candle is BULLISH with HIGH.
EPS Growth Rate: SND’s -2.6% versus K’s 4.91%
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 Smart Sand, Inc. (NASDAQ:SND) is predicted at -2.6% while Kellogg Company (NYSE:K) stands at 4.91%. These numbers suggest that K 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 SND stands at 1.6 while K is at 0.8 whereas the debt ratio of the prior is 0.22 while the debt ratio of the later is 2.93.
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 3 for SND and 2.7 for K which means SND has Hold rating whereas K 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 SND is $5.88 which is 44.39% of its current price while K has price target of 70.26 which is 7.23% 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.
SND currently has price to earning P/E ratio of 6.49 whereas K has 12.25 while the forward P/E ratio for the prior stands at 3.76 and for the later it depicts the value of 14.64.
The price to Book P/B for SND is 0.66, Price to Sale is at 0.69 and for K these ratios stand at 7.42 and 1.71.