The shares of Douglas Emmett, Inc. (NYSE:DEI) and Cheniere Energy, Inc. (NYSE:LNG) were among the active stocks of the last trading sessions. Douglas Emmett, Inc. (NYSE:DEI) declined to -0.37% closing at the price of $37.5 whereas the shares of Cheniere Energy, Inc. (NYSE:LNG) declined -0.99% with the decrease of -0.66 points closing at the price of $65.97. Douglas Emmett, Inc. has currently increase 5.54% in its stock over the period of 6-months while its rival Cheniere Energy, Inc. added 17.28% 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 Douglas Emmett, Inc. (NYSE:DEI) is 3.8% while the ROI of Cheniere Energy, Inc. (NYSE:LNG) is 7.2%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DEI’s EBITDA Margin is 21.95 whereas LNG’s is 20.05.
Both the profitability ratios suggest a mixed sentiment for Douglas Emmett, Inc. (NYSE:DEI) and Cheniere Energy, Inc. (NYSE:LNG).
EPS & Surprise Factor
Douglas Emmett, Inc. (NYSE:DEI) reported $0.19/share EPS for the previous quarter where analysts were predicting an EPS to be $0.17/share Thus beating the analyst Estimates with a Surprise Factor of 11.8 Percent. While, Cheniere Energy, Inc. (NYSE:LNG) reported EPS of $-0.07/share in the last quarter. The analysts projected EPS of $0.25/share depicting a Surprise of -128 Percent.
Taking a look at Earnings per Share, Douglas Emmett, Inc. tends to be beating the analyst estimates more than Cheniere Energy, Inc.. so DEI is more profitable than LNG.
Technical Analysis of Douglas Emmett, Inc. & Cheniere Energy, Inc.
Moving average convergence divergence (MACD) shows that Douglas Emmett, Inc. (NYSE:DEI) is on a PRICE RELATIVITY trend While Cheniere Energy, Inc. (NYSE:LNG) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Douglas Emmett, Inc. was in BULLISH territory and Cheniere Energy, Inc. was in BEARISH territory.
DEI’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While LNG’s candle is BEARISH with MEDIUM.
EPS Growth Rate: DEI’s 8% versus LNG’s 47.1%
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 Douglas Emmett, Inc. (NYSE:DEI) is predicted at 8% while Cheniere Energy, Inc. (NYSE:LNG) stands at 47.1%. These numbers suggest that LNG 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 DEI stands at 0 while LNG is at 2.3 whereas the debt ratio of the prior is 1.67 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 2.7 for DEI and 1.4 for LNG which means DEI has Hold rating whereas LNG 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 DEI is $41.57 which is 9.79% of its current price while LNG has price target of 75.54 which is 12.67% 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.
DEI currently has price to earning P/E ratio of 55.39 whereas LNG has 26.99 while the forward P/E ratio for the prior stands at 48.2 and for the later it depicts the value of 21.71.
The price to Book P/B for DEI is 2.59, Price to Sale is at 7.48 and for LNG these ratios stand at 0 and 2.4.