The shares of Centennial Resource Development, Inc. (NASDAQ:CDEV) and The Blackstone Group L.P. (NYSE:BX) were among the active stocks of the last trading sessions. Centennial Resource Development, Inc. (NASDAQ:CDEV) soared to 2.25% closing at the price of $22.23 whereas the shares of The Blackstone Group L.P. (NYSE:BX) declined -0.24% with the decrease of -0.09 points closing at the price of $37.16. Centennial Resource Development, Inc. has currently increase 28.27% in its stock over the period of 6-months while its rival The Blackstone Group L.P. added 19.95% 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 Centennial Resource Development, Inc. (NASDAQ:CDEV) is 2.2% while the ROI of The Blackstone Group L.P. (NYSE:BX) is 15.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, CDEV’s EBITDA Margin is 11.59 whereas BX’s is NOT AVAILABLE.
Both the profitability ratios suggest that The Blackstone Group L.P. (NYSE:BX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Centennial Resource Development, Inc. (NASDAQ:CDEV) reported $0.25/share EPS for the previous quarter where analysts were predicting an EPS to be $0.21/share Thus beating the analyst Estimates with a Surprise Factor of 19 Percent. While, The Blackstone Group L.P. (NYSE:BX) reported EPS of $0.9/share in the last quarter. The analysts projected EPS of $0.75/share depicting a Surprise of 20 Percent.
Taking a look at Earnings per Share, The Blackstone Group L.P. tends to be beating the analyst estimates more than Centennial Resource Development, Inc.. so BX is more profitable than CDEV.
Technical Analysis of Centennial Resource Development, Inc. & The Blackstone Group L.P.
Moving average convergence divergence (MACD) shows that Centennial Resource Development, Inc. (NASDAQ:CDEV) is on a PRICE RELATIVITY trend While The Blackstone Group L.P. (NYSE:BX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Centennial Resource Development, Inc. was in BULLISH territory and The Blackstone Group L.P. was in BEARISH territory.
CDEV’s current statistics gauge that the stock candle is BULLISH with LOW volatility. While BX’s candle is BULLISH with HIGH.
EPS Growth Rate: CDEV’s 61.35% versus BX’s 6.8%
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 Centennial Resource Development, Inc. (NASDAQ:CDEV) is predicted at 61.35% while The Blackstone Group L.P. (NYSE:BX) stands at 6.8%. These numbers suggest that CDEV 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 CDEV stands at 0.9 while BX is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 1.49.
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 1.7 for CDEV and 1.6 for BX which means CDEV has Buy rating whereas BX 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 CDEV is $26.5 which is 16.11% of its current price while BX has price target of 44.05 which is 15.64% 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.
CDEV currently has price to earning P/E ratio of 34.1 whereas BX has 11.94 while the forward P/E ratio for the prior stands at 17.68 and for the later it depicts the value of 11.44.
The price to Book P/B for CDEV is 1.94, Price to Sale is at 8.68 and for BX these ratios stand at 3.59 and 5.62.