The shares of TRI Pointe Group, Inc. (NYSE:TPH) and Coca-Cola European Partners plc (NYSE:CCE) were among the active stocks of the last trading sessions. TRI Pointe Group, Inc. (NYSE:TPH) soared to 1.07% closing at the price of $12.33 whereas the shares of Coca-Cola European Partners plc (NYSE:CCE) declined -0.11% with the decrease of -0.05 points closing at the price of $44.76. TRI Pointe Group, Inc. has currently decrease -27.13% in its stock over the period of 6-months while its rival Coca-Cola European Partners plc added 8.72% 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 TRI Pointe Group, Inc. (NYSE:TPH) is 6.3% while the ROI of Coca-Cola European Partners plc (NYSE:CCE) is 8.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, TPH’s EBITDA Margin is 6.85 whereas CCE’s is 13.81.
Both the profitability ratios suggest that Coca-Cola European Partners plc (NYSE:CCE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
TRI Pointe Group, Inc. (NYSE:TPH) reported $0.42/share EPS for the previous quarter where analysts were predicting an EPS to be $0.36/share Thus beating the analyst Estimates with a Surprise Factor of 16.7 Percent. While, Coca-Cola European Partners plc (NYSE:CCE) reported EPS of $0.77/share in the last quarter. The analysts projected EPS of $0.75/share depicting a Surprise of 2.7 Percent.
Taking a look at Earnings per Share, TRI Pointe Group, Inc. tends to be beating the analyst estimates more than Coca-Cola European Partners plc. so TPH is more profitable than CCE.
Technical Analysis of TRI Pointe Group, Inc. & Coca-Cola European Partners plc
Moving average convergence divergence (MACD) shows that TRI Pointe Group, Inc. (NYSE:TPH) is on a PRICE RELATIVITY trend While Coca-Cola European Partners plc (NYSE:CCE) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the TRI Pointe Group, Inc. was in BEARISH territory and Coca-Cola European Partners plc was in BEARISH territory.
TPH’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While CCE’s candle is BULLISH with MEDIUM.
EPS Growth Rate: TPH’s 16.76% versus CCE’s 12.18%
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 TRI Pointe Group, Inc. (NYSE:TPH) is predicted at 16.76% while Coca-Cola European Partners plc (NYSE:CCE) stands at 12.18%. These numbers suggest that TPH 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 TPH stands at 0 while CCE is at 1 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 0.83.
The values of the both ratios suggest that CCE is more suitable investment when the liquidity and risk is the main concern.
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 2.7 for TPH and 2.2 for CCE which means TPH has Hold rating whereas CCE 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 TPH is $17.22 which is 28.4% of its current price while CCE has price target of 47.31 which is 5.39% 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.
TPH currently has price to earning P/E ratio of 6.85 whereas CCE has 19.41 while the forward P/E ratio for the prior stands at 6.31 and for the later it depicts the value of 15.32.
The price to Book P/B for TPH is 0.92, Price to Sale is at 0.58 and for CCE these ratios stand at 2.78 and 1.71.