Analyze Financial Indicators in Vulcan Materials Company (VMC) and Brookfield Infrastructure Partners L.P. (BIP)
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, Vulcan Materials Company and Brookfield Infrastructure Partners L.P.. Then you need to ensure that they are in the same or similar sector. Vulcan Materials Company (VMC) and Brookfield Infrastructure Partners L.P. (BIP) are in Industrial Goods and Utilities respectively.
Starting with the P/E ratio, Vulcan Materials Company (VMC) has a P/E ratio of 54.72 and (BIP) has a P/E ratio of 78.89. The lesser the ratio the more value it may have compared to the other. Looking further, the Forward P/E ratio for VMC is 22.61 and Brookfield Infrastructure Partners L.P.(BIP) is 22.49. This will tell you where each company is headed.
Going further, the dividend yield for Vulcan Materials Company is 0.009 and for Brookfield Infrastructure Partners L.P. is 0.0473. 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 Vulcan Materials Company(BIP) is 0.61 and for BIP is . Cash on hand for Vulcan Materials Company is 435.11 and for Brookfield Infrastructure Partners L.P. is 13.34, compare that with 89.66 and 44.65 respectively, this will help determine if the dividend yield can continue.
Taking a look at the technical health, Vulcan Materials Company (VMC) has a 200-day simple moving average of 0.39% and Brookfield Infrastructure Partners L.P. (BIP) has an average of -4.11%. Comparing that the price of $124.43 for Vulcan Materials Company and $39.76 for Brookfield Infrastructure Partners L.P., you can gauge how overbought or oversold the company is. You can also look at the 52-week high, which is for VMC and for (BIP).
Other important numbers you need to look at include the price target. The current price target for Vulcan Materials Company (VMC) is $142.83 and for Brookfield Infrastructure Partners L.P. (BIP) is $46.60. Comparing that to the current price of $124.43 and $39.76 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 Vulcan Materials Company is -3.07% and for Brookfield Infrastructure Partners L.P. is -11.27%. 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 Vulcan Materials Company and Brookfield Infrastructure Partners L.P., 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 worthwhile.