The shares of Berry Global Group, Inc. (NYSE:BERY) and Sanchez Energy Corporation (NYSE:SN) were among the active stocks of the last trading sessions. Berry Global Group, Inc. (NYSE:BERY) declined to -4.29% closing at the price of $45.03 whereas the shares of Sanchez Energy Corporation (NYSE:SN) soared 2.44% with the increase of 0.06 points closing at the price of $2.52. Berry Global Group, Inc. has currently decrease -18.79% in its stock over the period of 6-months while its rival Sanchez Energy Corporation subtracted -34.38% 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 Berry Global Group, Inc. (NYSE:BERY) is 9.2% while the ROI of Sanchez Energy Corporation (NYSE:SN) is -8.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BERY’s EBITDA Margin is 8.75 whereas SN’s is 11.06.
Both the profitability ratios suggest a mixed sentiment for Berry Global Group, Inc. (NYSE:BERY) and Sanchez Energy Corporation (NYSE:SN).
EPS & Surprise Factor
Berry Global Group, Inc. (NYSE:BERY) reported $0.96/share EPS for the previous quarter where analysts were predicting an EPS to be $1.05/share Thus lagging the analyst Estimates with a Surprise Factor of -8.6 Percent. While, Sanchez Energy Corporation (NYSE:SN) reported EPS of $-0.26/share in the last quarter. The analysts projected EPS of $0.07/share depicting a Surprise of -471.4 Percent.
Taking a look at Earnings per Share, Berry Global Group, Inc. tends to be beating the analyst estimates more than Sanchez Energy Corporation. so BERY is more profitable than SN.
Technical Analysis of Berry Global Group, Inc. & Sanchez Energy Corporation
Moving average convergence divergence (MACD) shows that Berry Global Group, Inc. (NYSE:BERY) is on a PRICE RELATIVITY trend While Sanchez Energy Corporation (NYSE:SN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Berry Global Group, Inc. was in BEARISH territory and Sanchez Energy Corporation was in BULLISH territory.
BERY’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SN’s candle is BULLISH with MEDIUM.
EPS Growth Rate: BERY’s 11.26% versus SN’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 Berry Global Group, Inc. (NYSE:BERY) is predicted at 11.26% while Sanchez Energy Corporation (NYSE:SN) stands at 0%. These numbers suggest that BERY 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 BERY stands at 2 while SN is at 1.1 whereas the debt ratio of the prior is 4.45 while the debt ratio of the later is 0.
The values of the both ratios suggest that BERY 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 1.7 for BERY and 3.1 for SN which means BERY has Buy rating whereas SN has Sell 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 BERY is $61.69 which is 27.01% of its current price while SN has price target of 3.15 which is 20% 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.
BERY currently has price to earning P/E ratio of 16.18 whereas SN has 0 while the forward P/E ratio for the prior stands at 11.72 and for the later it depicts the value of 4.12.
The price to Book P/B for BERY is 4.44, Price to Sale is at 0.78 and for SN these ratios stand at 0 and 0.24.