Is Venerable Retailer JCPenney (JCP) Less Expensive to Own vs. Social Media Giant Facebook (FB)?
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Price: $18.98 -2.11%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: -16.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
Revenue Growth %: -16.3%
Trade JCP Now!
J.C. Penney Co. (NYSE: JCP) shares are well off of session highs Tuesday, amid CEO Ron Johnson issuing comments on CNBC earlier. But, even with shares down about 48 percent from annual highs of $43.18 hit in February, shares still more expensive than one of the hottest stocks around: Facebook (Nasdaq: FB).
Since its May 18th IPO, the stock has also fallen 48 percent as investors continue to ponder Facebook's mobile ad revenue strategy and the leadership capacity of CEO Mark Zuckerberg.
So, while J.C. Penney is at $22.34 today, Facebook is looking rather svelte at $21.86.
One of the biggest gripes from some investors was the high valuation for little to-date delivery on Facebook shares. According to the WSJ and market data, J.C. Penney's forward P/E is about 18 times, while Facebook is at 45 times, so the valuation still stands. Facebook's trailing P/E is 81 times, compared with 19 times for J.C. Penney.
Here's another tidbit to mull over: Facebook has about 2.1 billion outstanding common shares while J.C. Penney has just 219 million, or about 90 percent less.
So, do you buy shares of the hottest tech company around or settle for a century-old retailer which has been pummeled and is right in the middle of a turnaround? That's a good question.
Shares of J.C. Penney are up about 0.9 percent while Facebook is down 5.7 percent.
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Since its May 18th IPO, the stock has also fallen 48 percent as investors continue to ponder Facebook's mobile ad revenue strategy and the leadership capacity of CEO Mark Zuckerberg.
So, while J.C. Penney is at $22.34 today, Facebook is looking rather svelte at $21.86.
One of the biggest gripes from some investors was the high valuation for little to-date delivery on Facebook shares. According to the WSJ and market data, J.C. Penney's forward P/E is about 18 times, while Facebook is at 45 times, so the valuation still stands. Facebook's trailing P/E is 81 times, compared with 19 times for J.C. Penney.
Here's another tidbit to mull over: Facebook has about 2.1 billion outstanding common shares while J.C. Penney has just 219 million, or about 90 percent less.
So, do you buy shares of the hottest tech company around or settle for a century-old retailer which has been pummeled and is right in the middle of a turnaround? That's a good question.
Shares of J.C. Penney are up about 0.9 percent while Facebook is down 5.7 percent.
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