The shares of J.M. Smucker Company (The) (NYSE:SJM) and YPF Sociedad Anonima (NYSE:YPF) were among the active stocks of the last trading sessions. J.M. Smucker Company (The) (NYSE:SJM) declined to -1.6% closing at the price of $109.14 whereas the shares of YPF Sociedad Anonima (NYSE:YPF) declined -0.92% with the decrease of -0.140000000000001 points closing at the price of $15.11. J.M. Smucker Company (The) has currently decrease -13.85% in its stock over the period of 6-months while its rival YPF Sociedad Anonima subtracted -36.38% 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 J.M. Smucker Company (The) (NYSE:SJM) is 5.9% while the ROI of YPF Sociedad Anonima (NYSE:YPF) is 5.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, SJM’s EBITDA Margin is 10.34 whereas YPF’s is 4.34.
Both the profitability ratios suggest that J.M. Smucker Company (The) (NYSE:SJM) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
J.M. Smucker Company (The) (NYSE:SJM) reported $2.03/share EPS for the previous quarter where analysts were predicting an EPS to be $2.18/share Thus lagging the analyst Estimates with a Surprise Factor of -6.9 Percent. While, YPF Sociedad Anonima (NYSE:YPF) reported EPS of $0.79/share in the last quarter. The analysts projected EPS of $0.26/share depicting a Surprise of 203.8 Percent.
Taking a look at Earnings per Share, YPF Sociedad Anonima tends to be beating the analyst estimates more than J.M. Smucker Company (The). so YPF is more profitable than SJM.
Technical Analysis of J.M. Smucker Company (The) & YPF Sociedad Anonima
Moving average convergence divergence (MACD) shows that J.M. Smucker Company (The) (NYSE:SJM) is on a PRICE RELATIVITY trend While YPF Sociedad Anonima (NYSE:YPF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the J.M. Smucker Company (The) was in BULLISH territory and YPF Sociedad Anonima was in BULLISH territory.
SJM’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While YPF’s candle is BEARISH with HIGH.
EPS Growth Rate: SJM’s 4.5% versus YPF’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 J.M. Smucker Company (The) (NYSE:SJM) is predicted at 4.5% while YPF Sociedad Anonima (NYSE:YPF) stands at 0%. These numbers suggest that SJM 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 SJM stands at 1.5 while YPF is at 1.2 whereas the debt ratio of the prior is 0.61 while the debt ratio of the later is 1.18.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
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 3 for SJM and 1.9 for YPF which means SJM has Hold rating whereas YPF 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 SJM is $106.23 which is -2.74% of its current price while YPF has price target of 29.89 which is 49.45% 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.
SJM currently has price to earning P/E ratio of 21.79 whereas YPF has 9.04 while the forward P/E ratio for the prior stands at 12.74 and for the later it depicts the value of 7.97.
The price to Book P/B for SJM is 1.56, Price to Sale is at 1.62 and for YPF these ratios stand at 0.97 and 0.63.