Comparable Company Analysis: Franklin Resources, Inc. (BEN), Cardinal Health, Inc. (CAH)

Franklin Resources, Inc. (NYSE:BEN) shares were trading higher by 1.55 percent ($0.67) at $43.94 a piece in Thursday’s session. It had closed the previous session at $43.27. BEN trades with a P/S ratio of 3.78. This is lower than the both industry’s 9.86 and the wider sector’s 6.33. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 14.33 and a trailing 12-month price-earnings (P/E) multiple of 14.59. Shares of BEN have downtrended -2.2% in the past three months, while the S&P 500 has moved -10.46% in that time. Franklin Resources, Inc. (BEN) has a market cap of $24.19 billion and over the last 12 months, Franklin Resources, Inc. (NYSE:BEN) has gone stronger by 7.83%. During the last 52 weeks, the (NYSE:BEN) price has been as high as $47.65 and as low as $39.38. Franklin Resources, Inc. earnings have risen with an annualized rate of 0.2% over the last 5 years.

Franklin Resources, Inc. (Mean Target Price: $44.71)

The average 1-year price target for Franklin Resources, Inc. (BEN) — averaging the work of different analysts — reveals a mean PT of $44.71/share. That’s a potential 1.75 increase relative to where Franklin Resources, Inc. (NYSE:BEN) has been trading recently. The current price is seen ranging between $43.03 and $43.95. There are brokerage firms with lower targets than the average, including one setting a price target of $40. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $52.

Franklin Resources, Inc. (BEN) Consensus Recommendation

The collective rating of 3.2 for Franklin Resources, Inc. (NYSE:BEN) also leans strongly towards the bearish end of the spectrum. Of the 14 analysts surveyed by Reuters that track BEN 8 of them rate its stock a hold. The other 6, though not evenly; between analysts who think you should buy Franklin Resources, Inc. versus those who think you should sell it. A 2 analysts rate it as either a buy or a strong buy, while4 believe that investors should either steer clear of BEN or, if they already own its stock, sell it.

Is Cardinal Health, Inc. (NYSE:CAH) Cheap From Peers?

Cardinal Health, Inc. (CAH) pulled off a 1.54 percent gain and now trades for $69.11. CAH comes in with a P/S ratio of 0.17 that’s below 1, potentially implying that it could be cheap relative to the overall sector (6.83) and its peers (16.4). Also, it has an estimated price-earnings (P/E) multiple of 12.38 and a trailing 12-month price-earnings (P/E) multiple of 20.14. During the last 52 weeks, the price has been as high as $84.88 and as low as $54.66. Cardinal Health, Inc. (NYSE:CAH) earnings have risen with a quarterly rate of 3.9% over the last 5 years. Shares of CAH have increased 5% in the past three monthswhile the S&P 500 has dropped -3.86% in that time.

Cardinal Health, Inc. (Price Objective: $70)

Cardinal Health, Inc. (NYSE:CAH) has a market cap of $21.94 billion and over the last 12 months, CAH has declined by -6.25%. The average 1-year price target for (CAH) reveals an average price target of $70 per share. That’s a potential 1.29 gain from where (NYSE:CAH) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $55. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $84.

Analyst Thoughts About Cardinal Health, Inc. (NYSE:CAH)

The consensus recommendation — averaging the work of 17 analysts — of 3 for Cardinal Health, Inc. (CAH) points to moderate case. Of the analysts surveyed by Reuters that track Cardinal Health, Inc. 15 of them rate its stock a hold. The other 2 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 1 analysts rate it as either a buy or a strong buy, while 1 believe that investors should either steer clear of (NYSE:CAH) or, if they already own its stock, sell it.

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