The shares of CoreLogic, Inc. have increased by more than 18.46% this year alone. The shares recently went down by -1.33% or -$0.74 and now trades at $54.74. The shares of Burlington Stores, Inc. (NYSE:BURL), has jumped by 25.46% year to date as of 06/13/2018. The shares currently trade at $154.35 and have been able to report a change of -1.25% over the past one week.
The stock of CoreLogic, Inc. and Burlington Stores, 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.Next 5Y EPS Growth: 12.00% versus 25.60%
When a company is able to grow consistently in terms of earnings at a high compound rate have the highest likelihood of creating value for its shareholders over time. Analysts have predicted that CLGX will grow it’s earning at a 12.00% annual rate in the next 5 years. This is in contrast to BURL which will have a positive growth at a 25.60% annual rate. This means that the higher growth rate of BURL implies a greater potential for capital appreciation over the years.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. CLGX has an EBITDA margin of 16.39%, this implies that the underlying business of CLGX is more profitable. The ROI of CLGX is 6.40% while that of BURL is 28.20%. These figures suggest that BURL ventures generate a higher ROI than that of CLGX.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, CLGX’s free cash flow per share is a positive 4.81.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 CLGX is 0.70 and that of BURL is 1.00. This implies that it is easier for CLGX to cover its immediate obligations over the next 12 months than BURL. The debt ratio of CLGX is 1.70 compared to 10.20 for BURL. BURL can be able to settle its long-term debts and thus is a lower financial risk than CLGX.Valuation
CLGX currently trades at a forward P/E of 17.99, a P/B of 4.41, and a P/S of 2.40 while BURL trades at a forward P/E of 22.08, a P/B of 92.98, and a P/S of 1.66. This means that looking at the earnings, book values and sales basis, CLGX 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 CLGX is currently at a 10.59% to its one-year price target of 49.50. Looking at its rival pricing, BURL is at a -3.81% relative to its price target of 160.47.
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), CLGX is given a 2.60 while 1.90 placed for BURL. This means that analysts are more bullish on the outlook for CLGX 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 CLGX is 5.11 while that of BURL is just 3.69. This means that analysts are more bullish on the forecast for BURL stock.
The stock of CoreLogic, Inc. defeats that of Burlington Stores, Inc. when the two are compared, with CLGX taking 6 out of the total factors that were been considered. CLGX 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, CLGX is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for CLGX is better on when it is viewed on short interest.