When comparing stocks, various parameters like fundamentals, technicals, ownership are examined.
Let’s choose Microsoft Corporation and NVIDIA Corp to understand better.
Enter the stock names in the boxes and click ’Compare Stocks’ to receive a comprehensive analysis.
The comparison highlights the winning stock and indicates the number of parameters where it outperforms the other. In this example, NVIDIA Corp is identified as the winner against Microsoft Corporation, excelling in 22 out of 25 parameters.
Fundamentals
In the Fundamentals section of a stock comparison, key parameters such as financials, valuation metrics, and ratios are considered.
Financials: This includes comparisons based on revenue and net profit % changes, both YoY and QoQ.
Revenue growth measures how the company's revenue increases over these periods (QoQ and YoY).
Net profit is the net income yielded as a portion of earnings.
Valuation metrics: Here, indicators like Price to Earnings, Price to Book Value, Price to Cash Flow from Operations, and Price To Sales Annual are analyzed.
Price to Earnings ratio helps determine if a stock is undervalued or overvalued.
Price To Book Value compares the current market value of a stock to its book value.
Price to Cash Flow from Operations assesses the company's market valuation relative to its cashflow.
Price To Sales Annual examines the sales multiples of a company.
Ratios: ROE Annual %, ROCE Annual %, Dividend yield 1yr %, and ROE Annual 3Yr Avg % are shown here.
ROE Annual % is the measure of a company’s net income divided by the value of its total shareholders’ equity, expressed as a percentage
ROCE Annual % evaluates profitability in terms of the capital employed.
Dividend yield 1yr % is the dividend paid out to shareholders each year compared to its current stock price.
ROE Annual 3Yr Avg % is a measure of a company’s net income divided by the value of its total shareholder’s equity over three years, expressed as a percentage.
Trendlyne Durability score and Piotroski score are also included in this section.
The Durability score, part of Trendlyne's DVM score, helps in identifying best-performing stocks.
The Piotroski score assesses a company’s strength based on the financials.
Technicals
The Technicals section includes analysis of momentum, returns, risks, SMA, and EMA.
Momentum: This includes key indicators like RSI, MFI, MACD, MACD signal line, Trendlyne Momentum score, and Delivery% volume Avg Week.
RSI (relative strength index) assesses the momentum of stock price change.
MFI (money flow index) uses price and volume to identify overbought or oversold signals.
MACD measures price trends.
MACD signal line indicates bullish or bearish movements.
Trendlyne Momentum score shows the stock's price change based on its momentum.
Delivery % volume Avg Week represents the percentage of shares (volume) traded over a week.
Returns: This section shows returns generated by a stock over different periods, including monthly, quarterly, one-year, and three-year changes in percentage.
Risks: Volatility compared to the market or another stock is represented here, with Beta values for 1 month, 3 months, 1 year, and 3 years, providing insight into the stock's relative risk.
SMA (simple moving average): It is the average share price over a specific period. Indicators like last trading price (LTP) above 20D SMA, LTP above 30D SMA, LTP above 50D SMA, and LTP above 200D SMA are available here.
EMA (exponential moving average): It shows trends over a certain period. Investors can see LTP above 20D EMA, LTP above 26D EMA, LTP above 50D EMA, and LTP above 200D EMA here.
Ownership
The Shareholding section focuses on percentage changes in shareholding among key stakeholders such as promoters, FIIs, and MFs, as well as any changes in pledged shares.
Promoter holding is the proportion of stock held by its promoters.
MF holding % shows the percentage of stock held by mutual funds over the given quarter.
FII (Foreign Institutional Investors) holding % represents the share of stock owned by FIIs in the quarter.
Promoter holding pledge % is the percentage of shares pledged by the promoters in the given quarter.
