The shares of Chevron Corporation (NYSE:CVX) and Nutanix, Inc. (NASDAQ:NTNX) were among the active stocks of the last trading sessions. Chevron Corporation (NYSE:CVX) declined to -0.39% closing at the price of $124.84 whereas the shares of Nutanix, Inc. (NASDAQ:NTNX) declined -5.4% with the decrease of -2.3 points closing at the price of $40.28. Chevron Corporation has currently increase 5.04% in its stock over the period of 6-months while its rival Nutanix, Inc. subtracted -22.98% 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 Chevron Corporation (NYSE:CVX) is 1.7% while the ROI of Nutanix, Inc. (NASDAQ:NTNX) is -25.7%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CVX’s EBITDA Margin is 10.35 whereas NTNX’s is -28.91.
Both the profitability ratios suggest that Chevron Corporation (NYSE:CVX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Chevron Corporation (NYSE:CVX) reported $1.78/share EPS for the previous quarter where analysts were predicting an EPS to be $2.09/share Thus lagging the analyst Estimates with a Surprise Factor of -14.8 Percent. While, Nutanix, Inc. (NASDAQ:NTNX) reported EPS of $-0.11/share in the last quarter. The analysts projected EPS of $-0.21/share depicting a Surprise of 47.6 Percent.
Taking a look at Earnings per Share, Nutanix, Inc. tends to be beating the analyst estimates more than Chevron Corporation. so NTNX is more profitable than CVX.
Technical Analysis of Chevron Corporation & Nutanix, Inc.
Moving average convergence divergence (MACD) shows that Chevron Corporation (NYSE:CVX) is on a PRICE RELATIVITY trend While Nutanix, Inc. (NASDAQ:NTNX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Chevron Corporation was in BULLISH territory and Nutanix, Inc. was in BEARISH territory.
CVX’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While NTNX’s candle is BEARISH with MEDIUM.
EPS Growth Rate: CVX’s 56.03% versus NTNX’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 Chevron Corporation (NYSE:CVX) is predicted at 56.03% while Nutanix, Inc. (NASDAQ:NTNX) stands at 0%. These numbers suggest that CVX 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 CVX stands at 1.1 while NTNX is at 2.8 whereas the debt ratio of the prior is 0.25 while the debt ratio of the later is 1.31.
The values of the both ratios suggest that NTNX 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 for CVX and 1.9 for NTNX which means CVX has Buy rating whereas NTNX 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 CVX is $146.15 which is 14.58% of its current price while NTNX has price target of 61.63 which is 34.64% 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.
CVX currently has price to earning P/E ratio of 23.65 whereas NTNX has 0 while the forward P/E ratio for the prior stands at 13.23 and for the later it depicts the value of 0.
The price to Book P/B for CVX is 1.56, Price to Sale is at 1.62 and for NTNX these ratios stand at 21.09 and 5.99.