Which Company would you put your All In? Teva Pharmaceutical Industries Limited (TEVA) or Devon Energy Corporation (DVN)

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The shares of Teva Pharmaceutical Industries Limited (NYSE:TEVA) and Devon Energy Corporation (NYSE:DVN) were among the active stocks of the last trading sessions. Teva Pharmaceutical Industries Limited (NYSE:TEVA) declined to -0.6% closing at the price of $21.37 whereas the shares of Devon Energy Corporation (NYSE:DVN) declined -3.15% with the decrease of -1.26 points closing at the price of $38.78. Teva Pharmaceutical Industries Limited has currently increase 19.52% in its stock over the period of 6-months while its rival Devon Energy Corporation added 15.42% 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) is -36% while the ROI of Devon Energy Corporation (NYSE:DVN) is 9.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TEVA’s EBITDA Margin is 10.08 whereas DVN’s is 10.14.

Both the profitability ratios suggest that Devon Energy Corporation (NYSE:DVN) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Teva Pharmaceutical Industries Limited (NYSE:TEVA) reported $0.78/share EPS for the previous quarter where analysts were predicting an EPS to be $0.64/share Thus beating the analyst Estimates with a Surprise Factor of 21.9 Percent. While, Devon Energy Corporation (NYSE:DVN) reported EPS of $0.34/share in the last quarter. The analysts projected EPS of $0.36/share depicting a Surprise of -5.6 Percent.

Taking a look at Earnings per Share, Teva Pharmaceutical Industries Limited tends to be beating the analyst estimates more than Devon Energy Corporation. so TEVA is more profitable than DVN.

Technical Analysis of Teva Pharmaceutical Industries Limited & Devon Energy Corporation

Moving average convergence divergence (MACD) shows that Teva Pharmaceutical Industries Limited (NYSE:TEVA) is on a PRICE RELATIVITY trend While Devon Energy Corporation (NYSE:DVN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Teva Pharmaceutical Industries Limited was in BEARISH territory and Devon Energy Corporation was in BEARISH territory.

TEVA’s current statistics gauge that the stock candle is BEARISH with LOW volatility. While DVN’s candle is BEARISH with LOW.

EPS Growth Rate: TEVA’s -7.5% versus DVN’s 77.99%

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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) is predicted at -7.5% while Devon Energy Corporation (NYSE:DVN) stands at 77.99%. These numbers suggest that DVN 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 TEVA stands at 1 while DVN is at 1.6 whereas the debt ratio of the prior is 2.13 while the debt ratio of the later is 0.76.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

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 TEVA and 2.1 for DVN which means TEVA has Hold rating whereas DVN 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 TEVA is $21.53 which is 0.74% of its current price while DVN has price target of 51.57 which is 24.8% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

TEVA currently has price to earning P/E ratio of 0 whereas DVN has 0 while the forward P/E ratio for the prior stands at 7.53 and for the later it depicts the value of 14.34.

The price to Book P/B for TEVA is 1.53, Price to Sale is at 1.06 and for DVN these ratios stand at 2.49 and 1.71.