What should I trade first Scotts (NYSE:SMG) or HRG?
 | By Raphi Shpitalnik | Macroaxis Story |
While some millenniums may be indifferent towards basic materials space, we will examine how sound are Scotts Miracle fundamentals compared to HRG. We are going to discuss some of the competitive aspects of both Scotts and HRG.
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Reviewed by Michael Smolkin
By analyzing existing basic indicators between Scotts Miracle and HRG, 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 HRG with a short position in Scotts Miracle. 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. Scotts Miracle has an asset utilization ratio of 147.04 percent. This indicates that the company is making $1.47 for each dollar of assets. An increasing asset utilization means that Scotts Miracle Gro 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 Scotts or CF Industries is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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. Scotts Miracle has an asset utilization ratio of 147.04 percent. This indicates that the company is making $1.47 for each dollar of assets. An increasing asset utilization means that Scotts Miracle Gro 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 Scotts or CF Industries is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Scotts Miracle dividends
A dividend is the distribution of a portion of Scotts Miracle earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Scotts Miracle dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Scotts one year expected dividend income is about USD1.76 per share.
The Scotts Miracle's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 8.91, while Dividends Paid is projected to decrease to roughly 117.4 M. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 171.5 M | 117.4 M | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | (0.35) | (0.34) | |
| Dividend Paid And Capex Coverage Ratio | 8.49 | 8.91 |
Investing in dividend-paying stocks, such as Scotts Miracle Gro is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Scotts Miracle must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Scotts Miracle. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Scotts Miracle's Liquidity
Scotts Miracle financial leverage refers to using borrowed capital as a funding source to finance Scotts Miracle Gro ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Scotts Miracle 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 Scotts Miracle'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 Scotts Miracle'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 Scotts Miracle's total debt and its cash.
Correlation Between Scotts and CF Industries Holdings
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 Scotts Miracle together with similar or unrelated positions with a negative correlation. For example, you can also add CF Industries to your portfolio. If CF Industries is not perfectly correlated to Scotts Miracle 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 Scotts Miracle, 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 Scotts Miracle and CF Industries in your portfolio? Please note if you are using this as a pair-trade strategy between Scotts Miracle and CF Industries, 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 SMG and CF for more information.Building efficient market-beating portfolios requires time, education, and a lot of computing power!
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