The shares of Plantronics, Inc. (NYSE:PLT) and Grupo Televisa S.A. (NYSE:TV) were among the active stocks of the last trading sessions. Plantronics, Inc. (NYSE:PLT) soared to 4.7% closing at the price of $61.9 whereas the shares of Grupo Televisa S.A. (NYSE:TV) declined -5.63% with the decrease of -0.9 points closing at the price of $15.08. Plantronics, Inc. has currently decrease -7.4% in its stock over the period of 6-months while its rival Grupo Televisa S.A. subtracted -19.01% 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 Plantronics, Inc. (NYSE:PLT) is 12.6% while the ROI of Grupo Televisa S.A. (NYSE:TV) is 4.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, PLT’s EBITDA Margin is 12.33 whereas TV’s is 7.57.
Both the profitability ratios suggest that Plantronics, Inc. (NYSE:PLT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Plantronics, Inc. (NYSE:PLT) reported $-0.16/share EPS for the previous quarter where analysts were predicting an EPS to be $0.72/share Thus lagging the analyst Estimates with a Surprise Factor of -122.2 Percent. While, Grupo Televisa S.A. (NYSE:TV) reported EPS of $0.09/share in the last quarter. The analysts projected EPS of $0.16/share depicting a Surprise of -43.8 Percent.
Taking a look at Earnings per Share, Grupo Televisa S.A. tends to be beating the analyst estimates more than Plantronics, Inc.. so TV is more profitable than PLT.
Technical Analysis of Plantronics, Inc. & Grupo Televisa S.A.
Moving average convergence divergence (MACD) shows that Plantronics, Inc. (NYSE:PLT) is on a PRICE RELATIVITY trend While Grupo Televisa S.A. (NYSE:TV) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Plantronics, Inc. was in BEARISH territory and Grupo Televisa S.A. was in BULLISH territory.
PLT’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While TV’s candle is BEARISH with HIGH.
EPS Growth Rate: PLT’s 15% versus TV’s 26.67%
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 Plantronics, Inc. (NYSE:PLT) is predicted at 15% while Grupo Televisa S.A. (NYSE:TV) stands at 26.67%. These numbers suggest that TV 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 PLT stands at 7.4 while TV is at 1.8 whereas the debt ratio of the prior is 1.32 while the debt ratio of the later is 1.39.
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 1.7 for PLT and 2.6 for TV which means PLT has Buy rating whereas TV 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 PLT is $85.5 which is 27.6% of its current price while TV has price target of 20.75 which is 27.33% 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.
PLT currently has price to earning P/E ratio of 25.45 whereas TV has 27.17 while the forward P/E ratio for the prior stands at 13.5 and for the later it depicts the value of 20.24.
The price to Book P/B for PLT is 5.37, Price to Sale is at 2.77 and for TV these ratios stand at 1.95 and 1.88.