Find Hidden Financial Traces with the Analysis for MGM Resorts International (MGM) and Quest Diagnostics Incorporated (DGX)
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, MGM Resorts International and Quest Diagnostics Incorporated. Then you need to ensure that they are in the same or similar sector. MGM Resorts International (MGM) and Quest Diagnostics Incorporated (DGX) are in Services and Healthcare respectively.
Starting with the P/E ratio, MGM Resorts International (MGM) has a P/E ratio of 32.38 and (DGX) has a P/E ratio of 23.47. The lesser the ratio the more value it may have compared to the other. Looking further, the Forward P/E ratio for MGM is 17.73 and Quest Diagnostics Incorporated(DGX) is 16.23. This will tell you where each company is headed.
Going further, the dividend yield for MGM Resorts International is 0.0155 and for Quest Diagnostics Incorporated is 0.0176. 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 MGM Resorts International(DGX) is 1.8 and for DGX is . Cash on hand for MGM Resorts International is 10.93 and for Quest Diagnostics Incorporated is 124.52, compare that with 22.2 and 22.98 respectively, this will help determine if the dividend yield can continue.
Taking a look at the technical health, MGM Resorts International (MGM) has a 200-day simple moving average of -5.99% and Quest Diagnostics Incorporated (DGX) has an average of 12.31%. Comparing that the price of $31.02 for MGM Resorts International and $113.53 for Quest Diagnostics Incorporated, you can gauge how overbought or oversold the company is. You can also look at the 52-week high, which is for MGM and for (DGX).
Other important numbers you need to look at include the price target. The current price target for MGM Resorts International (MGM) is $38.38 and for Quest Diagnostics Incorporated (DGX) is $115.47. Comparing that to the current price of $31.02 and $113.53 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 MGM Resorts International is -7.10% and for Quest Diagnostics Incorporated is 15.27%. 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 MGM Resorts International and Quest Diagnostics Incorporated, 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.