The shares of Umpqua Holdings Corporation (NASDAQ:UMPQ) and SeaWorld Entertainment, Inc. (NYSE:SEAS) were among the active stocks of the last trading sessions. Umpqua Holdings Corporation (NASDAQ:UMPQ) declined to -1% closing at the price of $20.84 whereas the shares of SeaWorld Entertainment, Inc. (NYSE:SEAS) soared 1.82% with the increase of 0.52 points closing at the price of $29.17. Umpqua Holdings Corporation has currently decrease -4.01% in its stock over the period of 6-months while its rival SeaWorld Entertainment, Inc. added 87.95% 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 Umpqua Holdings Corporation (NASDAQ:UMPQ) is 13.4% while the ROI of SeaWorld Entertainment, Inc. (NYSE:SEAS) is -6.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, UMPQ’s EBITDA Margin is NOT AVAILABLE whereas SEAS’s is 13.36.
Both the profitability ratios suggest that Umpqua Holdings Corporation (NASDAQ:UMPQ) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Umpqua Holdings Corporation (NASDAQ:UMPQ) reported $0.31/share EPS for the previous quarter where analysts were predicting an EPS to be $0.34/share Thus lagging the analyst Estimates with a Surprise Factor of -8.8 Percent. While, SeaWorld Entertainment, Inc. (NYSE:SEAS) reported EPS of $0.26/share in the last quarter. The analysts projected EPS of $0.27/share depicting a Surprise of -3.7 Percent.
Taking a look at Earnings per Share, SeaWorld Entertainment, Inc. tends to be beating the analyst estimates more than Umpqua Holdings Corporation. so SEAS is more profitable than UMPQ.
Technical Analysis of Umpqua Holdings Corporation & SeaWorld Entertainment, Inc.
Moving average convergence divergence (MACD) shows that Umpqua Holdings Corporation (NASDAQ:UMPQ) is on a PRICE RELATIVITY trend While SeaWorld Entertainment, Inc. (NYSE:SEAS) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Umpqua Holdings Corporation was in BULLISH territory and SeaWorld Entertainment, Inc. was in BEARISH territory.
UMPQ’s current statistics gauge that the stock candle is BEARISH with MEDIUM volatility. While SEAS’s candle is BULLISH with HIGH.
EPS Growth Rate: UMPQ’s 9% versus SEAS’s -6%
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 Umpqua Holdings Corporation (NASDAQ:UMPQ) is predicted at 9% while SeaWorld Entertainment, Inc. (NYSE:SEAS) stands at -6%. These numbers suggest that UMPQ 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 UMPQ stands at 0 while SEAS is at 0.4 whereas the debt ratio of the prior is 0.29 while the debt ratio of the later is 5.63.
The values of the both ratios suggest that SEAS 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 2.6 for UMPQ and 2.8 for SEAS which means UMPQ has Hold rating whereas SEAS 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 UMPQ is $23.79 which is 12.4% of its current price while SEAS has price target of 28.8 which is -1.28% 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.
UMPQ currently has price to earning P/E ratio of 17.62 whereas SEAS has 0 while the forward P/E ratio for the prior stands at 12.72 and for the later it depicts the value of 30.58.
The price to Book P/B for UMPQ is 1.15, Price to Sale is at 4.73 and for SEAS these ratios stand at 9.35 and 1.95.