The shares of Altice USA, Inc. (NYSE:ATUS) and Pacific Gas & Electric Co. (NYSE:PCG) were among the active stocks of the last trading sessions. Altice USA, Inc. (NYSE:ATUS) soared to 1.97% closing at the price of $18.11 whereas the shares of Pacific Gas & Electric Co. (NYSE:PCG) declined -0.06% with the decrease of -0.03 points closing at the price of $47.92. Altice USA, Inc. has currently increase 7.93% in its stock over the period of 6-months while its rival Pacific Gas & Electric Co. added 8.54% 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 Altice USA, Inc. (NYSE:ATUS) is 2.8% while the ROI of Pacific Gas & Electric Co. (NYSE:PCG) is 6.8%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ATUS’s EBITDA Margin is 9.1 whereas PCG’s is 7.75.
Both the profitability ratios suggest a mixed sentiment for Altice USA, Inc. (NYSE:ATUS) and Pacific Gas & Electric Co. (NYSE:PCG).
EPS & Surprise Factor
Altice USA, Inc. (NYSE:ATUS) reported $-0.13/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.06/share Thus lagging the analyst Estimates with a Surprise Factor of -116.7 Percent. While, Pacific Gas & Electric Co. (NYSE:PCG) reported EPS of $1.16/share in the last quarter. The analysts projected EPS of $0.94/share depicting a Surprise of 23.4 Percent.
Taking a look at Earnings per Share, Pacific Gas & Electric Co. tends to be beating the analyst estimates more than Altice USA, Inc.. so PCG is more profitable than ATUS.
Technical Analysis of Altice USA, Inc. & Pacific Gas & Electric Co.
Moving average convergence divergence (MACD) shows that Altice USA, Inc. (NYSE:ATUS) is on a PRICE RELATIVITY trend While Pacific Gas & Electric Co. (NYSE:PCG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Altice USA, Inc. was in BEARISH territory and Pacific Gas & Electric Co. was in BULLISH territory.
ATUS’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While PCG’s candle is BEARISH with MEDIUM.
EPS Growth Rate: ATUS’s 0% versus PCG’s 3.3%
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 Altice USA, Inc. (NYSE:ATUS) is predicted at 0% while Pacific Gas & Electric Co. (NYSE:PCG) stands at 3.3%. These numbers suggest that PCG 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 ATUS stands at 0.3 while PCG is at 0.7 whereas the debt ratio of the prior is 5.71 while the debt ratio of the later is 1.02.
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 2 for ATUS and 2.3 for PCG which means ATUS has Buy rating whereas PCG 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 ATUS is $25.48 which is 28.92% of its current price while PCG has price target of 52.36 which is 8.48% 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.
ATUS currently has price to earning P/E ratio of 0 whereas PCG has 91.8 while the forward P/E ratio for the prior stands at 51.74 and for the later it depicts the value of 11.91.
The price to Book P/B for ATUS is 3.31, Price to Sale is at 1.48 and for PCG these ratios stand at 1.31 and 1.44.