The shares of Ball Corporation (NYSE:BLL) and 22nd Century Group, Inc (NYSE:XXII) were among the active stocks of the last trading sessions. Ball Corporation (NYSE:BLL) soared to 0.91% closing at the price of $46.35 whereas the shares of 22nd Century Group, Inc (NYSE:XXII) soared 6.39% with the increase of 0.17 points closing at the price of $2.83. Ball Corporation has currently increase 15.47% in its stock over the period of 6-months while its rival 22nd Century Group, Inc added 23.58% 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 Ball Corporation (NYSE:BLL) is 6.6% while the ROI of 22nd Century Group, Inc (NYSE:XXII) is -17.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BLL’s EBITDA Margin is 12.22 whereas XXII’s is -15.47.
Both the profitability ratios suggest that Ball Corporation (NYSE:BLL) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Ball Corporation (NYSE:BLL) reported $0.58/share EPS for the previous quarter where analysts were predicting an EPS to be $0.59/share Thus lagging the analyst Estimates with a Surprise Factor of -1.7 Percent. While, 22nd Century Group, Inc (NYSE:XXII) reported EPS of $-0.03/share in the last quarter. The analysts projected EPS of $-0.02/share depicting a Surprise of -50 Percent.
Taking a look at Earnings per Share, Ball Corporation tends to be beating the analyst estimates more than 22nd Century Group, Inc. so BLL is more profitable than XXII.
Technical Analysis of Ball Corporation & 22nd Century Group, Inc
Moving average convergence divergence (MACD) shows that Ball Corporation (NYSE:BLL) is on a PRICE RELATIVITY trend While 22nd Century Group, Inc (NYSE:XXII) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ball Corporation was in BULLISH territory and 22nd Century Group, Inc was in BEARISH territory.
BLL’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While XXII’s candle is BULLISH with MEDIUM.
EPS Growth Rate: BLL’s 10.65% versus XXII’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 Ball Corporation (NYSE:BLL) is predicted at 10.65% while 22nd Century Group, Inc (NYSE:XXII) stands at 0%. These numbers suggest that BLL 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 BLL stands at 1.2 while XXII is at 10.2 whereas the debt ratio of the prior is 1.89 while the debt ratio of the later is 0.01.
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 1.9 for BLL and 2 for XXII which means BLL has Buy rating whereas XXII 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 BLL is $47.54 which is 2.5% of its current price while XXII has price target of 11.5 which is 75.39% 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.
BLL currently has price to earning P/E ratio of 30.8 whereas XXII has 0 while the forward P/E ratio for the prior stands at 17.08 and for the later it depicts the value of 0.
The price to Book P/B for BLL is 4.15, Price to Sale is at 1.38 and for XXII these ratios stand at 4.88 and 14.86.