The shares of TechTarget, Inc. (NASDAQ:TTGT) and Abercrombie & Fitch Company (NYSE:ANF) were among the active stocks of the last trading sessions. TechTarget, Inc. (NASDAQ:TTGT) declined to -19.19% closing at the price of $16.51 whereas the shares of Abercrombie & Fitch Company (NYSE:ANF) soared 1.8% with the increase of 0.36 points closing at the price of $20.33. TechTarget, Inc. has currently decrease -29.74% in its stock over the period of 6-months while its rival Abercrombie & Fitch Company subtracted -21.2% 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 TechTarget, Inc. (NASDAQ:TTGT) is 4.7% while the ROI of Abercrombie & Fitch Company (NYSE:ANF) is 3.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TTGT’s EBITDA Margin is 25.22 whereas ANF’s is 2.69.
Both the profitability ratios suggest that TechTarget, Inc. (NASDAQ:TTGT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
TechTarget, Inc. (NASDAQ:TTGT) reported $0.13/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Abercrombie & Fitch Company (NYSE:ANF) reported EPS of $0.06/share in the last quarter. The analysts projected EPS of $-0.04/share depicting a Surprise of 250 Percent.
Taking a look at Earnings per Share, Abercrombie & Fitch Company tends to be beating the analyst estimates more than TechTarget, Inc.. so ANF is more profitable than TTGT.
Technical Analysis of TechTarget, Inc. & Abercrombie & Fitch Company
Moving average convergence divergence (MACD) shows that TechTarget, Inc. (NASDAQ:TTGT) is on a PRICE RELATIVITY trend While Abercrombie & Fitch Company (NYSE:ANF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TechTarget, Inc. was in BEARISH territory and Abercrombie & Fitch Company was in BULLISH territory.
TTGT’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ANF’s candle is BULLISH with MEDIUM.
EPS Growth Rate: TTGT’s 20% versus ANF’s 18%
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 TechTarget, Inc. (NASDAQ:TTGT) is predicted at 20% while Abercrombie & Fitch Company (NYSE:ANF) stands at 18%. These numbers suggest that TTGT 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 TTGT stands at 3.1 while ANF is at 2.2 whereas the debt ratio of the prior is 0.21 while the debt ratio of the later is 0.
The values of the both ratios suggest that TTGT 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 2.5 for TTGT and 3.1 for ANF which means TTGT has Hold rating whereas ANF has Sell 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 TTGT is $29.25 which is 43.56% of its current price while ANF has price target of 21.15 which is 3.88% 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.
TTGT currently has price to earning P/E ratio of 40.57 whereas ANF has 25.57 while the forward P/E ratio for the prior stands at 21.22 and for the later it depicts the value of 21.84.
The price to Book P/B for TTGT is 3.54, Price to Sale is at 3.83 and for ANF these ratios stand at 1.22 and 0.38.