The shares of Gulfport Energy Corporation (NASDAQ:GPOR) and The Kraft Heinz Company (NASDAQ:KHC) were among the active stocks of the last trading sessions. Gulfport Energy Corporation (NASDAQ:GPOR) soared to 1.99% closing at the price of $11.26 whereas the shares of The Kraft Heinz Company (NASDAQ:KHC) soared 2.09% with the increase of 1.17 points closing at the price of $57.06. Gulfport Energy Corporation has currently increase 9.53% in its stock over the period of 6-months while its rival The Kraft Heinz Company subtracted -6.84% 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 Gulfport Energy Corporation (NASDAQ:GPOR) is 10.6% while the ROI of The Kraft Heinz Company (NASDAQ:KHC) is 5.4%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, GPOR’s EBITDA Margin is 4.89 whereas KHC’s is 12.21.
Both the profitability ratios suggest a mixed sentiment for Gulfport Energy Corporation (NASDAQ:GPOR) and The Kraft Heinz Company (NASDAQ:KHC).
EPS & Surprise Factor
Gulfport Energy Corporation (NASDAQ:GPOR) reported $0.33/share EPS for the previous quarter where analysts were predicting an EPS to be $0.32/share Thus beating the analyst Estimates with a Surprise Factor of 3.1 Percent. While, The Kraft Heinz Company (NASDAQ:KHC) reported EPS of $1/share in the last quarter. The analysts projected EPS of $0.92/share depicting a Surprise of 8.7 Percent.
Taking a look at Earnings per Share, The Kraft Heinz Company tends to be beating the analyst estimates more than Gulfport Energy Corporation. so KHC is more profitable than GPOR.
Technical Analysis of Gulfport Energy Corporation & The Kraft Heinz Company
Moving average convergence divergence (MACD) shows that Gulfport Energy Corporation (NASDAQ:GPOR) is on a PRICE RELATIVITY trend While The Kraft Heinz Company (NASDAQ:KHC) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Gulfport Energy Corporation was in BULLISH territory and The Kraft Heinz Company was in BULLISH territory.
GPOR’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While KHC’s candle is BULLISH with MEDIUM.
EPS Growth Rate: GPOR’s 8.01% versus KHC’s 4.97%
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 Gulfport Energy Corporation (NASDAQ:GPOR) is predicted at 8.01% while The Kraft Heinz Company (NASDAQ:KHC) stands at 4.97%. These numbers suggest that GPOR 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 GPOR stands at 0.5 while KHC is at 1 whereas the debt ratio of the prior is 0.66 while the debt ratio of the later is 0.52.
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 GPOR and 2.3 for KHC which means GPOR has Hold rating whereas KHC 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 GPOR is $15.18 which is 25.82% of its current price while KHC has price target of 67 which is 14.84% 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.
GPOR currently has price to earning P/E ratio of 5.4 whereas KHC has 18.82 while the forward P/E ratio for the prior stands at 8.05 and for the later it depicts the value of 14.77.
The price to Book P/B for GPOR is 0.61, Price to Sale is at 1.56 and for KHC these ratios stand at 1.06 and 2.64.