The shares of Ultra Petroleum Corp. (NASDAQ:UPL) and Hortonworks, Inc. (NASDAQ:HDP) were among the active stocks of the last trading sessions. Ultra Petroleum Corp. (NASDAQ:UPL) soared to 8.85% closing at the price of $1.23 whereas the shares of Hortonworks, Inc. (NASDAQ:HDP) declined -2.62% with the decrease of -0.61 points closing at the price of $22.67. Ultra Petroleum Corp. has currently decrease -60.45% in its stock over the period of 6-months while its rival Hortonworks, Inc. added 27.15% 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 Ultra Petroleum Corp. (NASDAQ:UPL) is 52% while the ROI of Hortonworks, Inc. (NASDAQ:HDP) is 311.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, UPL’s EBITDA Margin is 4.65 whereas HDP’s is -5.38.
Both the profitability ratios suggest a mixed sentiment for Ultra Petroleum Corp. (NASDAQ:UPL) and Hortonworks, Inc. (NASDAQ:HDP).
EPS & Surprise Factor
Ultra Petroleum Corp. (NASDAQ:UPL) reported $0.17/share EPS for the previous quarter where analysts were predicting an EPS to be $0.2/share Thus lagging the analyst Estimates with a Surprise Factor of -15 Percent. While, Hortonworks, Inc. (NASDAQ:HDP) reported EPS of $-0.12/share in the last quarter. The analysts projected EPS of $-0.23/share depicting a Surprise of 47.8 Percent.
Taking a look at Earnings per Share, Hortonworks, Inc. tends to be beating the analyst estimates more than Ultra Petroleum Corp.. so HDP is more profitable than UPL.
Technical Analysis of Ultra Petroleum Corp. & Hortonworks, Inc.
Moving average convergence divergence (MACD) shows that Ultra Petroleum Corp. (NASDAQ:UPL) is on a PRICE RELATIVITY trend While Hortonworks, Inc. (NASDAQ:HDP) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Ultra Petroleum Corp. was in BULLISH territory and Hortonworks, Inc. was in BULLISH territory.
UPL’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While HDP’s candle is BULLISH with HIGH.
EPS Growth Rate: UPL’s 20.4% versus HDP’s 20%
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 Ultra Petroleum Corp. (NASDAQ:UPL) is predicted at 20.4% while Hortonworks, Inc. (NASDAQ:HDP) stands at 20%. These numbers suggest that UPL 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 UPL stands at 0.5 while HDP is at 1 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 2.8 for UPL and 1.9 for HDP which means UPL has Hold rating whereas HDP 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 UPL is $2.25 which is 45.33% of its current price while HDP has price target of 28.21 which is 19.64% 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.
UPL currently has price to earning P/E ratio of 0 whereas HDP has 0 while the forward P/E ratio for the prior stands at 2.26 and for the later it depicts the value of 0.
The price to Book P/B for UPL is 0, Price to Sale is at 0.28 and for HDP these ratios stand at 0 and 6.27.