The shares of SAP SE (NYSE:SAP) and Sealed Air Corporation (NYSE:SEE) were among the active stocks of the last trading sessions. SAP SE (NYSE:SAP) declined to -0.12% closing at the price of $115.18 whereas the shares of Sealed Air Corporation (NYSE:SEE) soared 0.14% with the increase of 0.0600000000000023 points closing at the price of $42.45. SAP SE has currently increase 2.48% in its stock over the period of 6-months while its rival Sealed Air Corporation subtracted -14.1% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money, The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of SAP SE (NYSE:SAP) is 11% while the ROI of Sealed Air Corporation (NYSE:SEE) is 9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SAP’s EBITDA Margin is 18.71 whereas SEE’s is 13.95.
Both the profitability ratios suggest that SAP SE (NYSE:SAP) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
SAP SE (NYSE:SAP) reported $0.89/share EPS for the previous quarter where analysts were predicting an EPS to be $0.89/share Thus meeting the analyst Estimates with a Surprise Factor of 0 Percent. While, Sealed Air Corporation (NYSE:SEE) reported EPS of $0.51/share in the last quarter. The analysts projected EPS of $0.51/share depicting a Surprise of 0 Percent.
Taking a look at Earnings per Share, Sealed Air Corporation tends to be beating the analyst estimates more than SAP SE. so SEE is more profitable than SAP.
Technical Analysis of SAP SE & Sealed Air Corporation
Moving average convergence divergence (MACD) shows that SAP SE (NYSE:SAP) is on a PRICE RELATIVITY trend While Sealed Air Corporation (NYSE:SEE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the SAP SE was in BEARISH territory and Sealed Air Corporation was in BEARISH territory.
SAP’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While SEE’s candle is BEARISH with LOW.
EPS Growth Rate: SAP’s 9.53% versus SEE’s 21.36%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of SAP SE (NYSE:SAP) is predicted at 9.53% while Sealed Air Corporation (NYSE:SEE) stands at 21.36%. These numbers suggest that SEE is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of SAP stands at 1.3 while SEE is at 1.2 whereas the debt ratio of the prior is 0.06 while the debt ratio of the later is 0.
The values of the both ratios suggest that SAP is more suitable investment when the liquidity and risk is the main concern.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.3 for SAP and 2.2 for SEE which means SAP has Hold rating whereas SEE has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for SAP is $126.63 which is 9.04% of its current price while SEE has price target of 50.08 which is 15.24% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
SAP currently has price to earning P/E ratio of 29.95 whereas SEE has 32.04 while the forward P/E ratio for the prior stands at 20.51 and for the later it depicts the value of 14.69.
The price to Book P/B for SAP is 4.63, Price to Sale is at 5.21 and for SEE these ratios stand at 0 and 1.51.