Drive Story

DS -- USA Stock

USD 2.99 0.12 3.86%

Macroaxis Story

It looks like Escalade will continue to recover much faster as its share price surged up 0.17% today to Drive Shack's 18.0451%. As many investors are getting excited about consumer cyclical space, Drive Shack and Escalade may be going in opposite directions. We are going to discuss some of the competitive aspects of both Drive and Escalade.

Published over a month ago

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Escalade vs Drive Shack

By analyzing existing basic indicators between Drive Shack and Escalade, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Escalade with a short position in Drive Shack. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Drive Shack has an asset utilization ratio of 15.77 percent. This connotes that the company is making $0.16 for each dollar of assets. An increasing asset utilization means that Drive Shack is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Drive or Escalade is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Drive Shack's Liquidity

Drive Shack financial leverage refers to using borrowed capital as a funding source to finance Drive Shack ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Drive Shack financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Drive Shack's total debt and its cash.

Correlation Between Drive and Escalade

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Drive Shack together with similar or unrelated positions with a negative correlation. For example, you can also add Escalade to your portfolio. If Escalade is not perfectly correlated to Drive Shack it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Drive Shack for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between DS and ESCA for more information.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Drive Shack revenue. Based on the latest financial disclosure, Drive Shack reported 231.52 M of revenue. This is 96.75% lower than that of the Consumer Cyclical sector and 91.49% lower than that of the Leisure industry. The revenue for all United States stocks is 97.55% higher than that of Drive Shack. As for Escalade we see revenue of 273.65 M, which is 89.94% lower than that of the Leisure

Sector

2.7 B

DS	231.52 Million	7.18
Sector	2.72 Billion	84.34
ESCA	273.65 Million	8.48

Our perspective of the latest Drive Shack spike

Downside variance is down to 37.42. It may connote a possible volatility fall.

As of the 13th of March 2021, Drive Shack shows the Coefficient Of Variation of 1082.99, downside deviation of 6.12, and Mean Deviation of 4.51. Drive Shack technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Drive Shack, which can be compared to its rivals. Please confirm Drive Shack information ratio, as well as the relationship between the potential upside and kurtosis to decide if Drive Shack is priced favorably, providing market reflects its regular price of 3.14 per share. Given that Drive Shack has jensen alpha of 0.4679, we urge you to verify Drive Shack's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While many other companies within the leisure industry are still a little expensive, even after the recent corrections, Drive Shack may offer a potential longer-term growth to retail investors. In closing, as of the 13th of March 2021, our primary 30 days recommendation on the enterprise is Hold. We believe Drive Shack is currently undervalued with quite high probability of distress for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Drive Shack. Please refer to our Terms of Use for any information regarding our disclosure principles.

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