The shares of DDR Corp. (NYSE:DDR) and Brixmor Property Group Inc. (NYSE:BRX) were among the active stocks of the last trading sessions. DDR Corp. (NYSE:DDR) declined to -0.72% closing at the price of $12.37 whereas the shares of Brixmor Property Group Inc. (NYSE:BRX) declined -1.05% with the decrease of -0.17 points closing at the price of $15.97. DDR Corp. has currently increase 2.51% in its stock over the period of 6-months while its rival Brixmor Property Group Inc. added 9.23% 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 DDR Corp. (NYSE:DDR) is -3.1% while the ROI of Brixmor Property Group Inc. (NYSE:BRX) is 5.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DDR’s EBITDA Margin is 12.28 whereas BRX’s is 12.42.
Both the profitability ratios suggest that Brixmor Property Group Inc. (NYSE:BRX) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
DDR Corp. (NYSE:DDR) reported $-0.07/share EPS for the previous quarter where analysts were predicting an EPS to be $0.03/share Thus lagging the analyst Estimates with a Surprise Factor of -333.3 Percent. While, Brixmor Property Group Inc. (NYSE:BRX) reported EPS of $0.26/share in the last quarter. The analysts projected EPS of $0.2/share depicting a Surprise of 30 Percent.
Taking a look at Earnings per Share, Brixmor Property Group Inc. tends to be beating the analyst estimates more than DDR Corp.. so BRX is more profitable than DDR.
Technical Analysis of DDR Corp. & Brixmor Property Group Inc.
Moving average convergence divergence (MACD) shows that DDR Corp. (NYSE:DDR) is on a PRICE RELATIVITY trend While Brixmor Property Group Inc. (NYSE:BRX) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the DDR Corp. was in BEARISH territory and Brixmor Property Group Inc. was in BEARISH territory.
DDR’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While BRX’s candle is NEUTRAL with HIGH.
EPS Growth Rate: DDR’s -6.04% versus BRX’s -5.09%
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 DDR Corp. (NYSE:DDR) is predicted at -6.04% while Brixmor Property Group Inc. (NYSE:BRX) stands at -5.09%. These numbers suggest that BRX 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 DDR stands at 0 while BRX is at 0 whereas the debt ratio of the prior is 1.66 while the debt ratio of the later is 1.92.
The values of the both ratios suggest that BRX 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 3.1 for DDR and 2.4 for BRX which means DDR has Sell rating whereas BRX 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 DDR is $14.37 which is 13.92% of its current price while BRX has price target of 19.1 which is 16.39% 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.
DDR currently has price to earning P/E ratio of 0 whereas BRX has 16.5 while the forward P/E ratio for the prior stands at 174.23 and for the later it depicts the value of 20.14.
The price to Book P/B for DDR is 1.06, Price to Sale is at 2.61 and for BRX these ratios stand at 1.69 and 3.84.