How Do Hilton Grand Vacations Inc. (NYSE:HGV) and HRG Group, Inc. (NYSE:HRG) Stack Up In Terms of Value?

Checking in on some valuation rankings, Hilton Grand Vacations Inc. (NYSE:HGV) has a Value Composite score of 50. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales.

The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 50.

Technicals

Investing in the stock market may include having to keep emotions in check. When things get crazy, investors may be forced with tough decisions. Being able to stay away from impulsive decisions may help when the time comes to tweak the portfolio.

Having the proper discipline and market perspective may also be a highly desirable trait for a successful trader. Investors who are able to practice discipline may be able to avoid emotional trading pitfalls in the future. Even highly experienced investors may have to someday make the difficult decisions in order to keep the portfolio strong.

Figuring out what works and what doesn’t may take many years of trial and error. Learning to filter through the daily noise can be a big asset when trying to focus on the particularly important information.

In taking a look at some other notable technicals, Hilton Grand Vacations Inc. (NYSE:HGV)’s ROIC is 0.196850. The ROIC 5 year average is and the ROIC Quality ratio is .

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. We also note that Hilton Grand Vacations Inc. (NYSE:HGV) has a Shareholder Yield of 0.000000 and a Shareholder Yield (Mebane Faber) of .

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.

Hilton Grand Vacations Inc. (NYSE:HGV) has a current MF Rank of 2907. 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. We can now take a quick look at some historical stock price index data. Hilton Grand Vacations Inc. (NYSE:HGV) presently has a 10 month price index of 1.35029.

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 1.35029, the 24 month is 1.35029, and the 36 month is 1.35029. Narrowing in a bit closer, the 5 month price index is 1.17661, the 3 month is 1.12920, and the 1 month is currently 1.01729. The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.

The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Hilton Grand Vacations Inc. (NYSE:HGV) is 4.00000. The score ranges on a scale of -1 to 6.

If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The Value Composite score of HRG Group, Inc. (NYSE:HRG) is 52. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.

The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of HRG Group, Inc. (NYSE:HRG) is 58.

Many investors enter the stock market without a plan in place. Investment goals may be a highly important part of coming out on top. Investors may need to set realistic and measureable goals in order to build a baseline for success.

Defining investment goals clearly can help keep individual investors from making common mistakes and losing their shirts. Creating a plan for entering the equity market may start by setting up goals and outlining the objectives of the individual. These goals can differ depending on the person and situation.

Many investors will opt to follow strategies put in place by others. This may work fine for some, but not as well for others. Keeping a close eye on particular stocks in the portfolio may help the investor when the time comes to adjust the holdings.

Being able to adapt to rapidly changing market environments may turn out to be immensely important when the winds of uncertainty blow in. Technicals at a Glance
In taking a look at some other notable technicals, HRG Group, Inc. (NYSE:HRG)’s ROIC is 0.140886. The ROIC 5 year average is 0.027818 and the ROIC Quality ratio is 2.290797.

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 HRG Group, Inc. (NYSE:HRG) is -0.000285.

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 HRG Group, Inc. (NYSE:HRG) has a Shareholder Yield of -0.014595 and a Shareholder Yield (Mebane Faber) of 0.16362.

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.

HRG Group, Inc. (NYSE:HRG) has a current MF Rank of 4341. 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. HRG Group, Inc. (NYSE:HRG) presently has a 10 month price index of 1.11392.

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 1.26074, the 24 month is 1.36965, and the 36 month is 1.39351. Narrowing in a bit closer, the 5 month price index is 1.01675, the 3 month is 0.90768, and the 1 month is currently 0.91097. 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 HRG Group, Inc. (NYSE:HRG) is 4. 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.

By DR Staff Writer

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