By analyzing existing technical and fundamental indicators between Professional Diversity and GEE, 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 GEE with a short position in Professional Diversity. 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. Professional Diversity has an asset utilization ratio of 10.36 percent. This suggests that the company is making $0.1 for each dollar of assets. An increasing asset utilization means that Professional Diversity Network 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 entities, such as Professional or Caldwell is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Professional Diversity's Liquidity
Professional Diversity
financial leverage refers to using borrowed capital as a funding source to finance Professional Diversity Network ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Professional Diversity 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. Financial leverage can amplify the potential profits to Professional Diversity's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Professional Diversity's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Professional Diversity's total debt and its cash.
Correlation Between Professional and Caldwell Partners
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 Professional Diversity together with similar or unrelated positions with a negative correlation. For example, you can also add Caldwell Partners to your portfolio. If Caldwell Partners is not perfectly correlated to Professional Diversity 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 Professional Diversity, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Professional Diversity and Caldwell Partners in your portfolio? Please note if you are using this as a pair-trade strategy between Professional Diversity and Caldwell Partners, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between IPDN and CWLPF for more information.
Is Professional Diversity valued appropriately by the market?
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 check Professional Diversity revenue. Based on the latest financial disclosure, Professional Diversity Network reported 4.29
M of revenue. This is 99.88% lower than that of the Industrials sector and significantly higher than that of the
Staffing & Employment Services industry. The revenue for all United States stocks is 99.95% higher than that of Professional Diversity. As for GEE we see revenue of 129.84
M, which is much higher than that of the Staffing & Employment Services
| IPDN | 4.29 Million | 3.2 |
| Sector | 0.0 | 0.0 |
| JOB | 129.84 Million | 96.8 |
Will Professional Diversity growth be feasible after the rise?
Total risk alpha is down to 0.83. It may entail a possible volatility slide. Professional Diversity Network is displaying above-average volatility over the selected time horizon. Investors should scrutinize Professional Diversity Network independently to ensure intended market timing strategies are aligned with expectations about Professional Diversity volatility.
Our Takeaway on Professional Diversity Investment
Whereas some firms under the staffing & employment services industry are still a bit expensive, Professional Diversity may offer a potential longer-term growth to institutional investors. In closing, as of the 9th of January 2021, our research shows that Professional Diversity is a rather abnormally volatile investment opportunity with a
very small chance of distress in the next two years. From a slightly different view, the entity currently appears to be
overvalued. Our overall 30 days buy-sell recommendation on the company is
Cautious Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Professional Diversity Network. Please refer to our
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