The shares of Olin Corporation (NYSE:OLN) and Helix Energy Solutions Group, Inc. (NYSE:HLX) were among the active stocks of the last trading sessions. Olin Corporation (NYSE:OLN) declined to -4.37% closing at the price of $24.09 whereas the shares of Helix Energy Solutions Group, Inc. (NYSE:HLX) soared 4.56% with the increase of 0.47 points closing at the price of $10.78. Olin Corporation has currently decrease -18.23% in its stock over the period of 6-months while its rival Helix Energy Solutions Group, Inc. added 68.97% 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 Olin Corporation (NYSE:OLN) is 5.1% while the ROI of Helix Energy Solutions Group, Inc. (NYSE:HLX) is -0.1%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, OLN’s EBITDA Margin is 6.62 whereas HLX’s is 12.34.
Both the profitability ratios suggest a mixed sentiment for Olin Corporation (NYSE:OLN) and Helix Energy Solutions Group, Inc. (NYSE:HLX).
EPS & Surprise Factor
Olin Corporation (NYSE:OLN) reported $0.48/share EPS for the previous quarter where analysts were predicting an EPS to be $0.4/share Thus beating the analyst Estimates with a Surprise Factor of 20 Percent. While, Helix Energy Solutions Group, Inc. (NYSE:HLX) reported EPS of $0.13/share in the last quarter. The analysts projected EPS of $0.07/share depicting a Surprise of 85.7 Percent.
Taking a look at Earnings per Share, Helix Energy Solutions Group, Inc. tends to be beating the analyst estimates more than Olin Corporation. so HLX is more profitable than OLN.
Technical Analysis of Olin Corporation & Helix Energy Solutions Group, Inc.
Moving average convergence divergence (MACD) shows that Olin Corporation (NYSE:OLN) is on a PRICE RELATIVITY trend While Helix Energy Solutions Group, Inc. (NYSE:HLX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Olin Corporation was in BEARISH territory and Helix Energy Solutions Group, Inc. was in BULLISH territory.
OLN’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While HLX’s candle is BULLISH with HIGH.
EPS Growth Rate: OLN’s 40.1% versus HLX’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 Olin Corporation (NYSE:OLN) is predicted at 40.1% while Helix Energy Solutions Group, Inc. (NYSE:HLX) stands at 0%. These numbers suggest that OLN 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 OLN stands at 1.8 while HLX is at 2.5 whereas the debt ratio of the prior is 1.27 while the debt ratio of the later is 0.29.
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 OLN and 1.9 for HLX which means OLN has Hold rating whereas HLX 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 OLN is $36.54 which is 34.07% of its current price while HLX has price target of 10.67 which is -1.03% 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.
OLN currently has price to earning P/E ratio of 22.2 whereas HLX has 98.9 while the forward P/E ratio for the prior stands at 9.21 and for the later it depicts the value of 30.2.
The price to Book P/B for OLN is 1.46, Price to Sale is at 0.61 and for HLX these ratios stand at 0.99 and 2.27.