Lamar Advertising Company (REIT) (NasdaqGS:LAMR) vs. Pilgrim’s Pride Corporation (NasdaqGS:PPC) VC Score Comparison

Lamar Advertising Company (REIT) (NasdaqGS:LAMR) currently has a Value Composite score of 57.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Lamar Advertising Company (REIT) (NasdaqGS:LAMR) is 48.

Stock market investors typically have to deal with the risk element when making decisions about specific holdings. There will always be a trade-off between risk and reward, and this is quite evident in the equity market. In general, the more that someone is willing to risk, the higher the potential gains. Investors might need to be willing to identify their risk levels before attempting to jump into the fray. Some investors will choose to play it safe while others will opt to swing for the fences. Managing risk becomes increasingly more important when economic conditions are cloudy. Accumulating the most amount of understanding and relevant information about a company may be a good place to start. Studying a company’s position in the current market may help with understanding how the company has set themselves up for future growth.

Technicals at a Glance

In taking a look at some other notable technicals, Lamar Advertising Company (REIT) (NasdaqGS:LAMR)’s ROIC is 0.180754. The ROIC 5 year average is 0.196442 and the ROIC Quality ratio is 13.554255. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Lamar Advertising Company (REIT) (NasdaqGS:LAMR) is 0.082894.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Shareholder Yield
We also note that Lamar Advertising Company (REIT) (NasdaqGS:LAMR) has a Shareholder Yield of 0.034509 and a Shareholder Yield (Mebane Faber) of -0.16951. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Lamar Advertising Company (REIT) (NasdaqGS:LAMR) has a current MF Rank of 6469. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Price Index
We can now take aquick look at some historical stock price index data. Lamar Advertising Company (REIT) (NasdaqGS:LAMR) presently has a 10 month price index of 1.05734. 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 1.16099, the 24 month is 1.21178, and the 36 month is 1.31320. Narrowing in a bit closer, the 5 month price index is 1.04699, the 3 month is 1.01619, and the 1 month is currently 0.94109.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Lamar Advertising Company (REIT) (NasdaqGS:LAMR) is 6.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

As earnings season kicks into high gear, investors may be analyzing the numbers and trying to decide what to do next. Investors may be choosing to buy companies that have a proven track record of solid earnings growth. Other investors may be looking to spot the diamonds in the rough that haven’t necessarily broken out yet. It may be wise to research companies that continually string together superior quarters. One great quarter or one horrible quarter may not provide enough information to justify either a buy or a sell. Many investors will look deeper into the numbers for companies that produce much wider surprise factors than expected. This may occur on either end of the dial with a beat or a miss. Earnings reports also have the ability to cause severe stock price fluctuations. Some traders will look to catch some profits while others may stay on the bench until the dust has cleared.

Taking a look at valuation rankings for Pilgrim’s Pride Corporation (NasdaqGS:PPC), we see that the stock has a Value Composite score of 37. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 44.

Many individuals may have a tough time trying to figure out what actually drives financial markets. There are plenty of investing strategies and trad Peersing systems that individuals can use when trying to navigate the stock market. Sudden stock market moves can be mysterious, especially if the move goes against what professionals are expecting. When traders are just starting out, major market shifts can have the ability to wreak havoc if they are unprepared. Nobody wants to be on the losing end of a trade, but the reality is that it can happen at any time. Being prepared for the unknown isn’t easy, but it may be a good way to help ease the burden when markets get choppy.

In taking a look at some other notable technicals, Pilgrim’s Pride Corporation (NasdaqGS:PPC)’s ROIC is 0.125030. The ROIC 5 year average is 0.391595 and the ROIC Quality ratio is 3.586594. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

The Q.i. Value of Pilgrim’s Pride Corporation (NasdaqGS:PPC) is 36.00000.  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 FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Pilgrim’s Pride Corporation (NasdaqGS:PPC) is 0.074489. 

Shareholder Yield
We also note that Pilgrim’s Pride Corporation (NasdaqGS:PPC) has a Shareholder Yield of -0.000852 and a Shareholder Yield (Mebane Faber) of 0.02749. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

MF Rank
Pilgrim’s Pride Corporation (NasdaqGS:PPC) has a current MF Rank of 6855. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

PI
We can now take aquick look at some historical stock price index data. Pilgrim’s Pride Corporation (NasdaqGS:PPC) presently has a 10 month price index of 1.39057. 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 1.43466, the 24 month is 1.16882, and the 36 month is 1.04500. Narrowing in a bit closer, the 5 month price index is 1.28880, the 3 month is 1.02821, and the 1 month is currently 1.02061.

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