Earnings

Taking Tally Of G-III Apparel Group, Ltd. (GIII), Qutoutiao Inc. (QTT)

The shares of G-III Apparel Group, Ltd. have decreased by more than -0.70% this year alone. The shares recently went down by -6.29% or -$2.46 and now trades at $36.63. The shares of Qutoutiao Inc. (NASDAQ:QTT), has slumped by -55.85% year to date as of 10/10/2018. The shares currently trade at $7.05 and have been able to report a change of 6.33% over the past one week.

The stock of G-III Apparel Group, Ltd. and Qutoutiao Inc. were two of the most active stocks on Wednesday. Investors seem to be very interested in what happens to the stocks of these two companies but do investors favor one over the other? We will analyze the growth, profitability, risk, valuation, and insider trends of both companies and see which one investors prefer.

Profitability and Returns

Growth alone cannot be used to see if the company will be valuable. Shareholders will be the losers if a company invest in ventures that aren’t profitable enough to support upbeat growth. In order for us to accurately measure profitability and return, we will be using the EBITDA margin and Return on Investment (ROI), which balances the difference in capital structure. GIII has an EBITDA margin of 7.96%, this implies that the underlying business of GIII is more profitable. The ROI of GIII is 7.50% while that of QTT is 87.90%. These figures suggest that QTT ventures generate a higher ROI than that of GIII.

Liquidity and Financial Risk

The ability of a company to meet up with its short-term obligations and be able to clear its longer-term debts is measured using Liquidity and leverage ratios. The current ratio for GIII is 2.10 and that of QTT is 3.40. This implies that it is easier for GIII to cover its immediate obligations over the next 12 months than QTT.

Valuation



GIII currently trades at a forward P/E of 12.16, a P/B of 1.66, and a P/S of 0.63 while QTT trades at a P/S of 11.15. This means that looking at the earnings, book values and sales basis, GIII is the cheaper one. It is very obvious that earnings are the most important factors to investors, thus analysts are most likely to place their bet on the P/E.

Analyst Price Targets and Opinions

The mistake some people make is that they think a cheap stock has more value to it. In order to know the value of a stock, there is need to compare its current price to its likely trading price in the future. The price of GIII is currently at a -31.53% to its one-year price target of 53.50.

Insider Activity and Investor Sentiment

Short interest or otherwise called the percentage of a stock’s tradable shares currently being shorted is another data that investors use to get a handle on sentiment. The short ratio for GIII is 5.80 while that of QTT is just 0.00. This means that analysts are more bullish on the forecast for QTT stock.




Conclusion

The stock of G-III Apparel Group, Ltd. defeats that of Qutoutiao Inc. when the two are compared, with GIII taking 3 out of the total factors that were been considered. GIII happens to be more profitable, generates a higher ROI, has higher cash flow per share, higher liquidity and has a lower financial risk. When looking at the stock valuation, GIII is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for GIII is better on when it is viewed on short interest.

Previous ArticleNext Article

Related Post

Comparing Valuation And Performance: BioPharmX Cor... The shares of BioPharmX Corporation have increased by more than 92.47% this year alone. The shares of NII Holdings, Inc. (NASDAQ:NIHD), has jumped by ...
Uncovering the next great stocks: Walgreens Boots ... The shares of Walgreens Boots Alliance, Inc. have decreased by more than -9.63% this year alone. The shares recently went up by 0.72% or $0.47 and now...
Are These Stocks A Sure Bet? – BioLineRx Ltd... The shares of BioLineRx Ltd. have increased by more than 22.94% this year alone. The shares recently went up by 17.54% or $0.2 and now trades at $1.34...
Are These Stocks A Sure Bet? – Lowe’s ... The shares of Lowe's Companies, Inc. have increased by more than 8.84% this year alone. The shares recently went up by 0.50% or $0.5 and now trades at...
Set Sail With Lannett Company, Inc. (LCI), Landcad... The shares of Lannett Company, Inc. have decreased by more than -79.66% this year alone. The shares recently went down by -4.07% or -$0.2 and now trad...