The shares of Diamond Offshore Drilling, Inc. (NYSE:DO) and Cronos Group Inc. (NASDAQ:CRON) were among the active stocks of the last trading sessions. Diamond Offshore Drilling, Inc. (NYSE:DO) declined to -4.45% closing at the price of $19.98 whereas the shares of Cronos Group Inc. (NASDAQ:CRON) declined -0.14% with the decrease of -0.0100000000000007 points closing at the price of $6.97. Diamond Offshore Drilling, Inc. has currently increase 1.52% in its stock over the period of 6-months while its rival Cronos Group Inc. subtracted -36.45% 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 Diamond Offshore Drilling, Inc. (NYSE:DO) is 2.3% while the ROI of Cronos Group Inc. (NASDAQ:CRON) is 0%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DO’s EBITDA Margin is 8.22 whereas CRON’s is -703.8.
Both the profitability ratios suggest that Diamond Offshore Drilling, Inc. (NYSE:DO) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Technical Analysis of Diamond Offshore Drilling, Inc. & Cronos Group Inc.
Moving average convergence divergence (MACD) shows that Diamond Offshore Drilling, Inc. (NYSE:DO) is on a PRICE RELATIVITY trend While Cronos Group Inc. (NASDAQ:CRON) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Diamond Offshore Drilling, Inc. was in BEARISH territory and Cronos Group Inc. was in BULLISH territory.
DO’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While CRON’s candle is BULLISH with LOW.
EPS Growth Rate: DO’s 0% versus CRON’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 Diamond Offshore Drilling, Inc. (NYSE:DO) is predicted at 0% while Cronos Group Inc. (NASDAQ:CRON) stands at 0%. These numbers suggest that CRON 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 DO stands at 4.5 while CRON is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.
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 3.5 for DO and 0 for CRON which means DO has Sell rating whereas CRON has Strong Buy rating.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
DO currently has price to earning P/E ratio of 180 whereas CRON has 1161.67 while the forward P/E ratio for the prior stands at 0 and for the later it depicts the value of 0.
The price to Book P/B for DO is 0.73, Price to Sale is at 1.97 and for CRON these ratios stand at 11.41 and 189.35.