In today’s market, there are thousands of options and companies to invest in. It can be difficult deciding where to place your hard earned money. One ways investors look to find the optimal investment is by looking at value. Value is simply looking at two stocks, and finding which one has the most room to run up compared to the other. First, you have to choose your companies, Black Knight, Inc. and Ecolab Inc.. Then you need to ensure that they are in the same or similar sector. Black Knight, Inc. (BKI) and Ecolab Inc. (ECL) are in Consumer Goods and Consumer Goods respectively.
Starting with the P/E ratio, Black Knight, Inc. (BKI) has a P/E ratio of 101.5 and ECL has a P/E ratio of 29.85. The lesser the ratio the more value it may have compared to the other. Looking further, the Forward P/E ratio for BKI is 23.43 and Ecolab Inc.ECL is 22.97. This will tell you where each company is headed.
Going further, the dividend yield for Black Knight, Inc. is *TBA and for Ecolab Inc. is 0.012. A dividend yield is a sign that the company is in good health and can repay investors. Also, it will help mitigate some risk as it has a steady yield. In order to sustain the dividend yield, we’ll want to compare debt to equity. The debt to equity for BKI is 0.84 and for ECL is . Cash on hand for Black Knight, Inc. is 488.96 and for Ecolab Inc. is 166.52, compare that with *TBA and 25.3 respectively, this will help determine if the dividend yield can continue.
Taking a look at the technical health, Black Knight, Inc.(BKI) has a 200-day simple moving average of 1.01% and Ecolab Inc. (ECL) has an average of 2.95%. Comparing that the price of $47.30 for Black Knight, Inc. and $136.90 for Ecolab Inc., you can gauge how overbought or oversold the company is. You can also look at the 52-week high, which is for BKI and for ECL.
Other important numbers you need to look at include the price target. The current price target for Black Knight, Inc. (BKI) is $53.15 and for Ecolab Inc.(ECL) is $147.58. Comparing that to the current price of $47.30 and $136.90 respectively, you can determine how much potential value is left.
A few other numbers you can look at include the year to date performance. This will tell you if the stock has been pushed down or not, giving you a place to start. The current year to date performance for Black Knight, Inc. is 7.13% and for Ecolab Inc. is 2.03%. You can go smaller on the time frames but for long term investors, looking at the year to date should be sufficient.
Being able to compare equities allows you to find value and put your money to work. Between Black Knight, Inc. and Ecolab Inc., you now have an idea which one may be at a discount and can provide greater returns. Value investing has lead to some solid returns, but it takes time to look at all aspects of the company. The work may be difficult, by the rewards can make it all worth while.