The shares of EQT Corporation (NYSE:EQT) and Monster Beverage Corporation (NASDAQ:MNST) were among the active stocks of the last trading sessions. EQT Corporation (NYSE:EQT) soared to 1.51% closing at the price of $46.39 whereas the shares of Monster Beverage Corporation (NASDAQ:MNST) soared 0.11% with the increase of 0.06 points closing at the price of $56.55. EQT Corporation has currently decrease -4.76% in its stock over the period of 6-months while its rival Monster Beverage Corporation added 0.59% 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 EQT Corporation (NYSE:EQT) is 4% while the ROI of Monster Beverage Corporation (NASDAQ:MNST) is 22.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EQT’s EBITDA Margin is 8.26 whereas MNST’s is 23.14.
Both the profitability ratios suggest that Monster Beverage Corporation (NASDAQ:MNST) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
EQT Corporation (NYSE:EQT) reported $0.44/share EPS for the previous quarter where analysts were predicting an EPS to be $0.47/share Thus lagging the analyst Estimates with a Surprise Factor of -6.4 Percent. While, Monster Beverage Corporation (NASDAQ:MNST) reported EPS of $0.49/share in the last quarter. The analysts projected EPS of $0.47/share depicting a Surprise of 4.3 Percent.
Taking a look at Earnings per Share, Monster Beverage Corporation tends to be beating the analyst estimates more than EQT Corporation. so MNST is more profitable than EQT.
Technical Analysis of EQT Corporation & Monster Beverage Corporation
Moving average convergence divergence (MACD) shows that EQT Corporation (NYSE:EQT) is on a PRICE RELATIVITY trend While Monster Beverage Corporation (NASDAQ:MNST) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the EQT Corporation was in BULLISH territory and Monster Beverage Corporation was in BEARISH territory.
EQT’s current statistics gauge that the stock candle is BULLISH with MEDIUM volatility. While MNST’s candle is BEARISH with MEDIUM.
EPS Growth Rate: EQT’s 9.87% versus MNST’s 17.09%
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 EQT Corporation (NYSE:EQT) is predicted at 9.87% while Monster Beverage Corporation (NASDAQ:MNST) stands at 17.09%. These numbers suggest that MNST 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 EQT stands at 0.8 while MNST is at 3 whereas the debt ratio of the prior is 0.73 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 2.1 for EQT and 2.1 for MNST which means EQT has Hold rating whereas MNST 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 EQT is $64.94 which is 28.56% of its current price while MNST has price target of 66 which is 14.32% 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.
EQT currently has price to earning P/E ratio of 0 whereas MNST has 34.17 while the forward P/E ratio for the prior stands at 20.9 and for the later it depicts the value of 28.53.
The price to Book P/B for EQT is 1.05, Price to Sale is at 2.87 and for MNST these ratios stand at 8.78 and 8.68.