The shares of Cactus, Inc. (NYSE:WHD) and The Stars Group Inc. (NASDAQ:TSG) were among the active stocks of the last trading sessions. Cactus, Inc. (NYSE:WHD) declined to -5.37% closing at the price of $33.69 whereas the shares of The Stars Group Inc. (NASDAQ:TSG) declined -0.69% with the decrease of -0.25 points closing at the price of $36.15. Cactus, Inc. has currently increase 0% in its stock over the period of 6-months while its rival The Stars Group Inc. added 53.83% 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 Cactus, Inc. (NYSE:WHD) is 39.6% while the ROI of The Stars Group Inc. (NASDAQ:TSG) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, WHD’s EBITDA Margin is 6.55 whereas TSG’s is 13.38.
Both the profitability ratios suggest a mixed sentiment for Cactus, Inc. (NYSE:WHD) and The Stars Group Inc. (NASDAQ:TSG).
EPS & Surprise Factor
Cactus, Inc. (NYSE:WHD) reported $0.34/share EPS for the previous quarter where analysts were predicting an EPS to be $0.32/share Thus beating the analyst Estimates with a Surprise Factor of 6.3 Percent. While, The Stars Group Inc. (NASDAQ:TSG) reported EPS of $0.58/share in the last quarter. The analysts projected EPS of $0.47/share depicting a Surprise of 23.4 Percent.
Taking a look at Earnings per Share, The Stars Group Inc. tends to be beating the analyst estimates more than Cactus, Inc.. so TSG is more profitable than WHD.
Technical Analysis of Cactus, Inc. & The Stars Group Inc.
Moving average convergence divergence (MACD) shows that Cactus, Inc. (NYSE:WHD) is on a PRICE RELATIVITY trend While The Stars Group Inc. (NASDAQ:TSG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Cactus, Inc. was in territory and The Stars Group Inc. was in BULLISH territory.
WHD’s current statistics gauge that the stock candle is with volatility. While TSG’s candle is BEARISH with HIGH.
EPS Growth Rate: WHD’s 0% versus TSG’s 0%
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 Cactus, Inc. (NYSE:WHD) is predicted at 0% while The Stars Group Inc. (NASDAQ:TSG) stands at 0%. These numbers suggest that TSG 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 WHD stands at 2.9 while TSG is at 0 whereas the debt ratio of the prior is 0.16 while the debt ratio of the later is 0.
The values of the both ratios suggest that WHD 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 1.6 for WHD and 2 for TSG which means WHD has Buy rating whereas TSG has Buy 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 WHD is $35.43 which is 4.91% of its current price while TSG has price target of 27.78 which is -30.13% 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.
WHD currently has price to earning P/E ratio of 31.9 whereas TSG has 27.79 while the forward P/E ratio for the prior stands at 16.13 and for the later it depicts the value of 14.7.
The price to Book P/B for WHD is 28.79, Price to Sale is at 6.23 and for TSG these ratios stand at 3.17 and 3.83.