The shares of EOG Resources, Inc. (NYSE:EOG) and Brookfield Property Partners L.P. (NASDAQ:BPY) were among the active stocks of the last trading sessions. EOG Resources, Inc. (NYSE:EOG) declined to -0.93% closing at the price of $129.83 whereas the shares of Brookfield Property Partners L.P. (NASDAQ:BPY) soared 2.06% with the increase of 0.41 points closing at the price of $20.35. EOG Resources, Inc. has currently increase 20.59% in its stock over the period of 6-months while its rival Brookfield Property Partners L.P. added 7.33% 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 EOG Resources, Inc. (NYSE:EOG) is 2.9% while the ROI of Brookfield Property Partners L.P. (NASDAQ:BPY) is 0.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EOG’s EBITDA Margin is 12.96 whereas BPY’s is 22.13.
Both the profitability ratios suggest a mixed sentiment for EOG Resources, Inc. (NYSE:EOG) and Brookfield Property Partners L.P. (NASDAQ:BPY).
EPS & Surprise Factor
Technical Analysis of EOG Resources, Inc. & Brookfield Property Partners L.P.
Moving average convergence divergence (MACD) shows that EOG Resources, Inc. (NYSE:EOG) is on a PRICE RELATIVITY trend While Brookfield Property Partners L.P. (NASDAQ:BPY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the EOG Resources, Inc. was in BULLISH territory and Brookfield Property Partners L.P. was in BEARISH territory.
EOG’s current statistics gauge that the stock candle is BEARISH with LOW volatility. While BPY’s candle is BULLISH with MEDIUM.
EPS Growth Rate: EOG’s 0% versus BPY’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 EOG Resources, Inc. (NYSE:EOG) is predicted at 0% while Brookfield Property Partners L.P. (NASDAQ:BPY) stands at 0%. These numbers suggest that BPY 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 EOG stands at 1 while BPY is at 0.3 whereas the debt ratio of the prior is 0.37 while the debt ratio of the later is 5.12.
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 EOG and 2 for BPY which means EOG has Buy rating whereas BPY 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 EOG is $142.31 which is 8.77% of its current price while BPY has price target of 24 which is 15.21% 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.
EOG currently has price to earning P/E ratio of 45.17 whereas BPY has 11.63 while the forward P/E ratio for the prior stands at 18.4 and for the later it depicts the value of 10.77.
The price to Book P/B for EOG is 4.29, Price to Sale is at 5.34 and for BPY these ratios stand at 0.86 and 0.85.