The shares of Continental Resources, Inc. (NYSE:CLR) and PBF Energy Inc. (NYSE:PBF) were among the active stocks of the last trading sessions. Continental Resources, Inc. (NYSE:CLR) declined to -2.95% closing at the price of $65.91 whereas the shares of PBF Energy Inc. (NYSE:PBF) soared 0.06% with the increase of 0.03 points closing at the price of $52.79. Continental Resources, Inc. has currently increase 8.07% in its stock over the period of 6-months while its rival PBF Energy Inc. added 51.78% 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 Continental Resources, Inc. (NYSE:CLR) is 3.2% while the ROI of PBF Energy Inc. (NYSE:PBF) is 8.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CLR’s EBITDA Margin is 10.12 whereas PBF’s is 9.71.
Both the profitability ratios suggest a mixed sentiment for Continental Resources, Inc. (NYSE:CLR) and PBF Energy Inc. (NYSE:PBF).
EPS & Surprise Factor
Continental Resources, Inc. (NYSE:CLR) reported $0.73/share EPS for the previous quarter where analysts were predicting an EPS to be $0.71/share Thus beating the analyst Estimates with a Surprise Factor of 2.8 Percent. While, PBF Energy Inc. (NYSE:PBF) reported EPS of $1.38/share in the last quarter. The analysts projected EPS of $1.36/share depicting a Surprise of 1.5 Percent.
Taking a look at Earnings per Share, Continental Resources, Inc. tends to be beating the analyst estimates more than PBF Energy Inc.. so CLR is more profitable than PBF.
Technical Analysis of Continental Resources, Inc. & PBF Energy Inc.
Moving average convergence divergence (MACD) shows that Continental Resources, Inc. (NYSE:CLR) is on a PRICE RELATIVITY trend While PBF Energy Inc. (NYSE:PBF) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Continental Resources, Inc. was in BULLISH territory and PBF Energy Inc. was in BULLISH territory.
CLR’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While PBF’s candle is BEARISH with LOW.
EPS Growth Rate: CLR’s 0% versus PBF’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 Continental Resources, Inc. (NYSE:CLR) is predicted at 0% while PBF Energy Inc. (NYSE:PBF) stands at 0%. These numbers suggest that PBF 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 CLR stands at 1 while PBF is at 1.7 whereas the debt ratio of the prior is 1.1 while the debt ratio of the later is 0.85.
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 2.1 for CLR and 2.6 for PBF which means CLR has Hold rating whereas PBF 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 CLR is $75.59 which is 12.81% of its current price while PBF has price target of 54.79 which is 3.65% 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.
CLR currently has price to earning P/E ratio of 40.26 whereas PBF has 7.24 while the forward P/E ratio for the prior stands at 17.26 and for the later it depicts the value of 10.16.
The price to Book P/B for CLR is 4.37, Price to Sale is at 6.23 and for PBF these ratios stand at 2.29 and 0.25.