What’s Unfolding For Shares of Direct Line Insurance Group plc (LSE:DLG)

Taking a look at some historical volatility numbers on shares of Direct Line Insurance Group plc (LSE:DLG), we can see that the 12 month volatility is …

Taking a look at some historical volatility numbers on shares of Direct Line Insurance Group plc (LSE:DLG), we can see that the 12 month volatility is presently 16.726900. The 6 month volatility is 18.278000, and the 3 month is spotted at 14.649300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Some stock market investors may abide to the saying, nothing ventured nothing gained. Others may operate by following the saying slow and steady wins the race. The correct move for one investor may not be the same for another. Some may choose to go all in, while others may look to reduce risk with stable long-term staple companies. Active equity investors may be forced to make hard decisions at some point, but working hard and being prepared may prove to be a portfolio booster. Dedicated investors are often willing to put in the extra hours in order to make sure no stone is left unturned.

We can now take a quick look at some historical stock price index data. Direct Line Insurance Group plc (LSE:DLG) presently has a 10 month price index of 0.98698. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.94482, the 24 month is 0.92721, and the 36 month is 1.01981. Narrowing in a bit closer, the 5 month price index is 0.90252, the 3 month is 0.92911, and the 1 month is currently 0.89948.

At the time of writing, Direct Line Insurance Group plc (LSE:DLG) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of Direct Line Insurance Group plc (LSE:DLG). The name currently has a score of 13.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Direct Line Insurance Group plc is 8.00000. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

It may be difficult for many investors to decide the right time to buy or sell a stock. Veteran investors may seem like they have it all figured out, and amateurs may feel like they are swimming upstream. Seasoned traders may have spent many years monitoring market ebbs and flows. Knowing when to take profits or cut losses can be a tough skill to achieve. It might be hard letting go of a well researched stock that hasn’t been performing well. Being able to exit a trade that has gone south can be a portfolio saver in the long run.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Direct Line Insurance Group plc (LSE:DLG) is 3529. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Direct Line Insurance Group plc (LSE:DLG) is 4901. The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Direct Line Insurance Group plc (LSE:DLG) over the past 52 weeks is 0.789000. The 52-week range can be found in the stock’s quote summary.

Investors may be looking for solid stocks to add to the portfolio. Sometimes, investors may choose to go against the grain and try something that nobody else is doing. This typically comes with plenty of time and research examining those appealing stocks. Digging into the fundamentals as well as tracking technical levels can help separate the winners from the losers. Investors who are able to keep the required temperament may be able to cope with market volatility and get positioned to take advantage of any opportunity that presents itself.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Direct Line Insurance Group plc (LSE:DLG) is 0.448435. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Direct Line Insurance Group plc is 0.962324. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors often have to make decisions on what to do with stocks that have unperformed. Maybe things didn’t pan out the right way, even after combing through the numbers. Sometimes it may be difficult to let go of a stock that isn’t up to par. Knowing when to cut a loser from the portfolio can be a useful skill for the individual investor. On the flip side, investors may have to decide whether to sell a winner. There may be occasions when a stock goes through the roof without any notice. The tricky part may be figuring out whether to cash in, or keep riding the wave. Heading into the next few quarters, investors will be trying to make sure they have all the bases covered.

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Dialog Semiconductor Plc (XTRA:DLG) Has Cash Flow Growth of 0.94665: Is it Enough?

Dialog Semiconductor Plc (XTRA:DLG) has seen year over year cash flow change of 0.94665. This is calculated as the one year percentage growth of …

Dialog Semiconductor Plc (XTRA:DLG) has seen year over year cash flow change of 0.94665. This is calculated as the one year percentage growth of the firm’s cash flow from operations from their publicly filed statement of cash flows. Cash reserves are an important element for an investor to consider when analyzing a stock. A continued reduction in cash flow could spell trouble for a firm while on the other hand solid continued cash flow growth should translate into stock growth.

Knowledgeable investors are typically better prepared when deciding what stocks to buy. Having a deeper understanding of companies, sectors, and investment concepts may prove to be a huge boost to the investor’s confidence and profits. Savvy investors generally know how to stick with an investing plan but are able to adapt to any unforeseen market movements. Building lasting wealth is usually at the forefront of many investor strategies. It may be nearly impossible to find explanations for unusual market activity until long after everything has shifted and settled. Being able to take the punches from everyday market happenings may help the investor stay focused on the long-term objectives. As long as there are markets, there will always be news swirling around. There will constantly be talk of the bulls and the bears, market corrections, sell-offs, and such. Being able to wade through the headlines to get down to the nitty-gritty important stuff is where the market masters make their living. Being able to focus on the right information can be a gigantic boost to the health of the individual investor’s portfolio. Finding out what works and what doesn’t can also play big part in coming out on top in the stock market. Although it may not be an easy endeavor, it may be attainable with the right amount of perseverance and dedication.

Dialog Semiconductor Plc (XTRA:DLG) of the Technology Hardware & Equipment sector closed the recent session at 42.810000 with a market value of $3350608.



Taking look at some key returns data we can note the following:

Dialog Semiconductor Plc (XTRA:DLG) has Return on Invested Capital of 0.549513, with a 5-year average of 0.608183 and an ROIC quality score of 3.925687. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.536899 for Dialog Semiconductor Plc (XTRA:DLG). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Dialog Semiconductor Plc (XTRA:DLG)’s Cash Flow to Capex stands at 8.654552.

When it comes to investing, people are generally told to make sure that they don’t put all their eggs in one basket. This saying can apply to investing in the stock market as well. Keeping the stock portfolio diversified can greatly behoove the individual investor. When hard earned money is on the line, individuals may want to pay extra attention as to how their equity holdings are spread out. Many investors will choose to pick stocks that combine large cap, small cap, and even international stocks. Although stock portfolio diversification does not eliminate risk, it can help reduce it during tumultuous market conditions.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at 0.94665 for Dialog Semiconductor Plc (XTRA:DLG). The one year Growth EBIT ratio stands at 0.80262 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.68267 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.84030. The one year growth in Net Profit after Tax is 0.73797 and lastly sales growth was 0.09421.

In looking at some Debt ratios, Dialog Semiconductor Plc (XTRA:DLG) has a debt to equity ratio of 0.04142 and a Free Cash Flow to Debt ratio of 7.976263. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -2.70733. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Dialog Semiconductor Plc’s ND to MV current stands at -0.323641. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

When it comes to investing, people are generally told to make sure that they don’t put all their eggs in one basket. This saying can apply to investing in the stock market as well. Keeping the stock portfolio diversified can greatly behoove the individual investor. When hard earned money is on the line, individuals may want to pay extra attention as to how their equity holdings are spread out. Many investors will choose to pick stocks that combine large cap, small cap, and even international stocks. Although stock portfolio diversification does not eliminate risk, it can help reduce it during tumultuous market conditions.

50/200 Simple Moving Average Cross

Dialog Semiconductor Plc (XTRA:DLG) has a 1.31372 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

As many veteran investors have already seen, market movements are extremely hard to accurately predict. Financial news outlets are always producing headlines and offering predictions for future market performance. Sometimes the predictions are right, and sometimes the predictions are wrong. Investors may have a hard time separating fact from fiction when it comes to bullish and bearish sentiment. Adjusting the portfolio based strictly on headlines can be tempting for the amateur investor. Filtering out the noise and focusing on the pertinent data can help keep the individual focused and on track. Straying from the plan and basing investment decisions on news headlines may lead to portfolio confusion down the road. Crunching the numbers and paying attention to the important economic data can greatly help the investor see through the smoke when markets get muddled.

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Juniper Networks, Inc. (NYSE:JNPR): A Peek Behind the Curtain

Taking a look at some historical volatility numbers on shares of Juniper Networks, Inc. (NYSE:JNPR), we can see that the 12 month volatility is …

Taking a look at some historical volatility numbers on shares of Juniper Networks, Inc. (NYSE:JNPR), we can see that the 12 month volatility is presently 25.326100. The 6 month volatility is 23.424600, and the 3 month is spotted at 24.781200. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The primary goal for some beginner traders might be just trying to survive. Traders that are disciplined with their money management may be able to better ride out the bumps that come with inexperience. Amateur traders tend to put too much at risk which can increase frustration during an extended losing streak. The more capital that is lost, the more difficult it can be to recover. Markets can be cruel, and traders that jump in without proper preparation can get pounded. Taking the time to carefully prepare before putting hard earned money at risk can help when the inevitable sticky situations arise.

At the time of writing, Juniper Networks, Inc. (NYSE:JNPR) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of Juniper Networks, Inc. (NYSE:JNPR). The name currently has a score of 12.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Juniper Networks, Inc. is 34.00000. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

The primary goal for some beginner traders might be just trying to survive. Traders that are disciplined with their money management may be able to better ride out the bumps that come with inexperience. Amateur traders tend to put too much at risk which can increase frustration during an extended losing streak. The more capital that is lost, the more difficult it can be to recover. Markets can be cruel, and traders that jump in without proper preparation can get pounded. Taking the time to carefully prepare before putting hard earned money at risk can help when the inevitable sticky situations arise.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Juniper Networks, Inc. (NYSE:JNPR) is 5624. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Juniper Networks, Inc. (NYSE:JNPR) is 5043. The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Juniper Networks, Inc. (NYSE:JNPR) over the past 52 weeks is 0.745000. The 52-week range can be found in the stock’s quote summary.

The primary goal for some beginner traders might be just trying to survive. Traders that are disciplined with their money management may be able to better ride out the bumps that come with inexperience. Amateur traders tend to put too much at risk which can increase frustration during an extended losing streak. The more capital that is lost, the more difficult it can be to recover. Markets can be cruel, and traders that jump in without proper preparation can get pounded. Taking the time to carefully prepare before putting hard earned money at risk can help when the inevitable sticky situations arise.

We can now take a quick look at some historical stock price index data. Juniper Networks, Inc. (NYSE:JNPR) presently has a 10 month price index of 0.83458. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.81542, the 24 month is 0.87722, and the 36 month is 1.05910. Narrowing in a bit closer, the 5 month price index is 0.88684, the 3 month is 0.92234, and the 1 month is currently 0.85102.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Juniper Networks, Inc. (NYSE:JNPR) is -0.519597. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Juniper Networks, Inc. is 0.255059. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors might be looking to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the stock market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings. There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for risk in order to start creating a solid investment plan.

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Glassman Wealth Services Purchases 924 Shares of QUALCOMM, Inc. (NASDAQ:QCOM)

Glassman Wealth Services raised its position in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 30.8% during the second quarter, …

QUALCOMM logoGlassman Wealth Services raised its position in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 30.8% during the second quarter, HoldingsChannel.com reports. The fund owned 3,927 shares of the wireless technology company’s stock after buying an additional 924 shares during the quarter. Glassman Wealth Services’ holdings in QUALCOMM were worth $299,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of QCOM. World Asset Management Inc boosted its position in shares of QUALCOMM by 18.5% during the 1st quarter. World Asset Management Inc now owns 91,562 shares of the wireless technology company’s stock worth $5,222,000 after purchasing an additional 14,322 shares in the last quarter. Bessemer Group Inc. boosted its position in shares of QUALCOMM by 2.5% during the 2nd quarter. Bessemer Group Inc. now owns 9,663 shares of the wireless technology company’s stock worth $735,000 after purchasing an additional 233 shares in the last quarter. Cincinnati Financial Corp boosted its position in shares of QUALCOMM by 4.9% during the 2nd quarter. Cincinnati Financial Corp now owns 957,500 shares of the wireless technology company’s stock worth $72,837,000 after purchasing an additional 45,000 shares in the last quarter. OLD Second National Bank of Aurora boosted its position in shares of QUALCOMM by 4.7% during the 1st quarter. OLD Second National Bank of Aurora now owns 37,027 shares of the wireless technology company’s stock worth $2,112,000 after purchasing an additional 1,661 shares in the last quarter. Finally, Nordea Investment Management AB raised its holdings in shares of QUALCOMM by 65.1% in the 1st quarter. Nordea Investment Management AB now owns 436,913 shares of the wireless technology company’s stock worth $24,915,000 after acquiring an additional 172,283 shares during the last quarter. 79.55% of the stock is currently owned by institutional investors and hedge funds.

NASDAQ:QCOM opened at $73.97 on Wednesday. The company has a debt-to-equity ratio of 2.46, a quick ratio of 1.61 and a current ratio of 1.77. The firm has a market cap of $89.38 billion, a price-to-earnings ratio of 23.19, a price-to-earnings-growth ratio of 2.03 and a beta of 1.62. QUALCOMM, Inc. has a 52 week low of $49.10 and a 52 week high of $90.34. The firm has a 50-day moving average price of $73.71 and a two-hundred day moving average price of $68.53.

QUALCOMM (NASDAQ:QCOM) last posted its quarterly earnings data on Wednesday, July 31st. The wireless technology company reported $0.64 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.02. The firm had revenue of $4.89 billion during the quarter, compared to analyst estimates of $5.12 billion. QUALCOMM had a net margin of 13.41% and a return on equity of 112.21%. The company’s revenue for the quarter was down 12.7% on a year-over-year basis. During the same quarter last year, the business posted $1.01 EPS. As a group, sell-side analysts forecast that QUALCOMM, Inc. will post 2.84 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Shareholders of record on Thursday, September 12th will be paid a $0.62 dividend. The ex-dividend date is Wednesday, September 11th. This represents a $2.48 annualized dividend and a yield of 3.35%. QUALCOMM’s dividend payout ratio (DPR) is 77.74%.

In other QUALCOMM news, SVP Erin L. Polek sold 1,478 shares of the stock in a transaction dated Friday, August 2nd. The shares were sold at an average price of $70.36, for a total value of $103,992.08. Following the completion of the sale, the senior vice president now owns 1,386 shares in the company, valued at approximately $97,518.96. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.11% of the company’s stock.

A number of equities research analysts recently weighed in on QCOM shares. Mizuho restated a “hold” rating and issued a $68.00 target price on shares of QUALCOMM in a report on Thursday, August 1st. Royal Bank of Canada restated a “sector perform” rating and issued a $79.00 target price on shares of QUALCOMM in a report on Monday, July 22nd. Barclays lowered shares of QUALCOMM from an “overweight” rating to an “equal weight” rating and lowered their target price for the stock from $90.00 to $75.00 in a report on Thursday, July 18th. DZ Bank restated a “sell” rating on shares of QUALCOMM in a report on Friday, August 2nd. Finally, TheStreet upgraded shares of QUALCOMM from a “c+” rating to a “b-” rating in a report on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the stock. QUALCOMM has a consensus rating of “Buy” and an average price target of $79.69.

QUALCOMM Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

Further Reading: What is a back-end load?

Want to see what other hedge funds are holding QCOM?Visit HoldingsChannel.com to get the latest 13F filings and insider trades for QUALCOMM, Inc. (NASDAQ:QCOM).

Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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Infosys Limited (INFY) vs. ING Groep NV (ING): Comparing the Information Technology Services …

Infosys Limited (NYSE:INFY) shares are up more than 17.76% this year and recently increased 0.18% or $0.02 to settle at $11.15. ING Groep N.V. …

Infosys Limited (NYSE:INFY) shares are up more than 17.76% this year and recently increased 0.18% or $0.02 to settle at $11.15. ING Groep N.V. (NYSE:ING), on the other hand, is down -11.91% year to date as of 08/27/2019. It currently trades at $9.39 and has returned 0.32% during the past week.

Infosys Limited (NYSE:INFY) and ING Groep N.V. (NYSE:ING) are the two most active stocks in the Information Technology Services industry based on today’s trading volumes. To determine if one is a better investment than the other, we will compare the two companies’ growth, profitability, risk, return, and valuation characteristics, as well as their analyst ratings and sentiment signals.

Growth

Companies that can consistently grow earnings at a high compound rate usually have the greatest potential to create value for shareholders in the long-run. Analysts expect INFY to grow earnings at a 8.00% annual rate over the next 5 years. Comparatively, ING is expected to grow at a 1.90% annual rate. All else equal, INFY’s higher growth rate would imply a greater potential for capital appreciation.

Profitability and Returns

Growth isn’t very attractive to investors if companies are sacrificing profitability and shareholder returns to achieve that growth. We will use Return on Investment (ROI), which control for differences in capital structure between the two companies, to measure profitability and return. INFY’s ROI is 19.30% while ING has a ROI of 5.60%. The interpretation is that INFY’s business generates a higher return on investment than ING’s.

Cash Flow

If there’s one thing investors care more about than earnings, it’s cash flow. INFY’s free cash flow (“FCF”) per share for the trailing twelve months was -2.42. Comparatively, ING’s free cash flow per share was +1.38. On a percent-of-sales basis, INFY’s free cash flow was -87.68% while ING converted 14.15% of its revenues into cash flow. This means that, for a given level of sales, ING is able to generate more free cash flow for investors.

Liquidity and Financial Risk

INFY’s debt-to-equity ratio is 0.07 versus a D/E of 2.53 for ING. ING is therefore the more solvent of the two companies, and has lower financial risk.

Valuation

INFY trades at a forward P/E of 18.68, a P/B of 6.09, and a P/S of 4.00, compared to a forward P/E of 6.08, a P/B of 0.63, and a P/S of 1.16 for ING. INFY is the expensive of the two stocks on an earnings, book value and sales basis. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.

Analyst Price Targets and Opinions

When investing it’s crucial to distinguish between price and value. As Warren Buffet said, “price is what you pay, value is what you get”. INFY is currently priced at a -2.36% to its one-year price target of 11.42. Comparatively, ING is -41.31% relative to its price target of 16.00. This suggests that ING is the better investment over the next year.

Risk and Volatility

To gauge the market risk of a particular stock, investors use beta. Stocks with a beta above 1 are more volatile than the market as a whole. Conversely, a beta below 1 implies below average systematic risk. INFY has a beta of 0.51 and ING’s beta is 1.32. INFY’s shares are therefore the less volatile of the two stocks.

Insider Activity and Investor Sentiment

The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the percentage of a stock’s tradable shares currently being shorted, captures what the market as a whole feels about a stock. INFY has a short ratio of 8.92 compared to a short interest of 0.48 for ING. This implies that the market is currently less bearish on the outlook for ING.

Summary

ING Groep N.V. (NYSE:ING) beats Infosys Limited (NYSE:INFY) on a total of 8 of the 14 factors compared between the two stocks. ING is growing fastly and has a higher cash conversion rate. In terms of valuation, ING is the cheaper of the two stocks on an earnings, book value and sales basis, ING is more undervalued relative to its price target. Finally, ING has better sentiment signals based on short interest.

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