By analyzing existing basic indicators between Spark Networks and Fiverr, 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 Fiverr with a short position in Spark Networks. 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. Spark Networks has an asset utilization ratio of 696.82 percent. This indicates that the company is making $6.97 for each dollar of assets. An increasing asset utilization means that Spark Networks 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 Spark or TuanChe is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Spark Networks's Liquidity
Spark Networks
financial leverage refers to using borrowed capital as a funding source to finance Spark Networks SE ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Spark Networks 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 Spark Networks' 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 Spark Networks' 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 Spark Networks's total debt and its cash.
Correlation Between Spark and TuanChe ADR
In general, Delisted 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 Spark Networks together with similar or unrelated positions with a negative correlation. For example, you can also add TuanChe ADR to your portfolio. If TuanChe ADR is not perfectly correlated to Spark Networks 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 Spark Networks, 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 Spark Networks and TuanChe ADR in your portfolio? Please note if you are using this as a pair-trade strategy between Spark Networks and TuanChe ADR, 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 LOV and TC for more information.
A Deeper look at Spark
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 Spark Networks revenue. Based on the latest financial disclosure, Spark Networks reported 230.48
M of revenue. This is 98.43% lower than that of the Communication Services sector and significantly higher than that of the
Internet Content & Information industry. The revenue for all United States stocks is 97.56% higher than that of Spark Networks. As for Fiverr International we see revenue of 189.51
M, which is much higher than that of the Internet Content & Information
| Spark | 230.48 Million |
| Sector | 0.0 |
| Fiverr | 189.51 Million |
Over 3 percent climb for Spark Networks. What does it mean for sophisticated investors?
The downside variance is down to 20.52 as of today. Spark Networks exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Spark Networks individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Spark Networks future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Spark Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Spark Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Spark Networks Implied Volatility
Spark Networks' implied volatility exposes the market's sentiment of Spark Networks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Spark Networks' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Spark Networks stock will not fluctuate a lot when Spark Networks' options are near their expiration.
Our Final Takeaway
While other entities under the internet content & information industry are still a bit expensive, Spark Networks may offer a potential longer-term growth to sophisticated investors. To conclude, as of the 25th of November 2021, we believe Spark Networks is currently
undervalued. It follows the market closely and projects
low probability of distress in the next two years. Our final 90 days 'Buy-Sell' recommendation on the venture is
Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Spark Networks SE. Please refer to our
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