Earnings

Taking Tally Of Premier, Inc. (PINC), Yext, Inc. (YEXT)

The shares of Premier, Inc. have increased by more than 7.78% this year alone. The shares recently went up by 2.81% or $0.86 and now trades at $31.46. The shares of Yext, Inc. (NYSE:YEXT), has jumped by 7.40% year to date as of 04/16/2018. The shares currently trade at $12.92 and have been able to report a change of 3.78% over the past one week.

The stock of Premier, Inc. and Yext, Inc. were two of the most active stocks on Monday. 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. PINC has an EBITDA margin of 38.56%, this implies that the underlying business of PINC is more profitable. The ROI of PINC is 25.80% while that of YEXT is -55.50%. These figures suggest that PINC ventures generate a higher ROI than that of YEXT.

Cash Flow

The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, PINC’s free cash flow per share is a positive 7.37.

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 PINC is 0.80 and that of YEXT is 1.50. This implies that it is easier for PINC to cover its immediate obligations over the next 12 months than YEXT.

Valuation

PINC currently trades at a forward P/E of 11.74, and a P/S of 2.73 while YEXT trades at a P/B of 14.68, and a P/S of 7.05. This means that looking at the earnings, book values and sales basis, PINC 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 PINC is currently at a -15.61% to its one-year price target of 37.28. Looking at its rival pricing, YEXT is at a -18.23% relative to its price target of 15.80.




When looking at the investment recommendation on say a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell), PINC is given a 2.00 while 2.40 placed for YEXT. This means that analysts are more bullish on the outlook for YEXT stocks.

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 PINC is 9.95 while that of YEXT is just 6.87. This means that analysts are more bullish on the forecast for YEXT stock.

Conclusion

The stock of Yext, Inc. defeats that of Premier, Inc. when the two are compared, with YEXT taking 6 out of the total factors that were been considered. YEXT 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, YEXT is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for YEXT is better on when it is viewed on short interest.

Previous ArticleNext Article

Related Post

Dissecting the Numbers for Xerox Corporation (XRX)... Xerox Corporation (NYSE:XRX) shares are up more than 24.30% this year and recently decreased -1.69% or -$0.49 to settle at $28.59. Internap Corporatio...
Taking Tally Of The Procter & Gamble Company ... The shares of The Procter & Gamble Company have decreased by more than -12.91% this year alone. The shares recently went down by -0.34% or -$0.27 ...
Comparing Northrop Grumman Corporation (NOC) and T... Northrop Grumman Corporation (NYSE:NOC) shares are up more than 31.96% this year and recently decreased -0.50% or -$1.55 to settle at $306.91. Textron...
Comparing Crown Castle International Corp. (REIT) ... Crown Castle International Corp. (REIT) (NYSE:CCI) shares are up more than 0.34% this year and recently increased 0.36% or $0.4 to settle at $111.39. ...
Should You Buy Cousins Properties Incorporated (CU... Cousins Properties Incorporated (NYSE:CUZ) shares are down more than -1.41% this year and recently increased 0.88% or $0.08 to settle at $9.12. STORE ...